Micro-Small-and Medium Business (UMKM) played a significant role in national economic development. UMKM had evidently been the one sector which was turbulent proof and crisis resistant. When crisis hampered Indonesia in 19997, UMKM had proved themselves as savior and “safety Belt” for the nation’s economy, the leading player in many sectors, and biggest provider of employment and leading player in local economic development.
In view of the great role of UMKM as sustainer of the nation’s economy, it became imperative to empower them so their contribution could be benefited by people of all walks of life. Deputy of Financing Division, the ministry of Cooperatives and UKM Agus Muharram underscored in Jakarta (8/4) the need to empower UKMK because that sector had a great contribution to the nation’s economy. “one thing sure, UKMM had been hardboiled as a business sector which is responsive, flexible and highly adaptive to great changes”.
Agus explained that UMKM was the biggest category of business in Indonesia, encompassing 52076 million, accommodating labor more than 91.8 millions workers, meaning 97.3% of Indonesian work-force were UMKM, besides, Agus elaborated that UMKM contributed significantly to Indonesian’s GDP which was posted at 55.6% or worth more than Rp.42.8 trillion. Meanwhile contribution of UMKM to total national non oil gas export reached 20.15% or 42.8 trillion.
Agus was optimistic that empowerment of UMKM could minimize poverty and unemployment of UMKM were still high in Indonesia. The government set target for poverty reduction to 8% in 2014. today poverty percentage was posted at 13.3% or equal to nearly 31 million people. Through UMKM empowerment, unemployment are national problem which must be solved together and this is our commitment “Agus underscored.
Not less important as Government’s home work today was, according to Agus, to change people’s mindset to be willing and be ambitious become entrepreneurs. They should be motivated to created added value or benefit for the market. Hence according to Agus, an entrepreneur was an innovator or trendsetter, for his social economic environment and for himself. In respect, the awakening to be an entrepreneur included attitudes, and initiative in the effort to energize the process of economic growth by changing the mindset toward higher productivity depending on each individual capacity respectively.
Agus explained that today the advancement process from micro to small business rose by 12 % per annum, while progress from small business to medium business rose by 4%; he underlined that it had become the government’s commitment to enforce all endeavors and thinking to troubleshoot problems in UMKM affairs. “we will help them in terms of financing and marketing including nurturing and illumination” Agus concluded.