Friday, 8 January 2016

GOVERNMENT URGED TO EMPOWER SMALL BUSINESS AMIDST ADVERSE ECONOMY



Depreciation of Rupiah value against USD had affected nearly economic sector. rupiah position today was the lowest since that during the Monetary crisis of 1997 – 1998. INDEF stated that weakening of Rupiah could never be as bad as during the crisis of 1998. The present problem of Rupiah was more related the Fed’s plan in the USA to increase FFR this September.

Amidts economic slowdown, the Small-and-Medium Industry (UMKM) was again expected to be the savior of Indonesia’s economy the way it happened in 1998 last. The executive Director of INDEF Enny Sri Hartati stated in Jakarta on Monday (31/8) that it was necessary for the Government to empower UMKM in the present adverse condition.

Enny stated that Rupiah value being under pressure should be an opportunity to strengthen competitive edge of domestic products. The high potential of competitiveness was in the UMKM sector because 98% of national economic players were in this sector. Unfortunately the police made by the Government had not served its purpose as savior of economy. He said that business climate was not condusive for UMKM even to find access to financial resources it was still hard for them.

Enny rated the troubled UMKM had caused economy growth to be slow in Q ll 2015. People’s low purchasing power had caused UMKM to lessen activities which affected national economy through first half of 2015. Enny states that if only the Government paid more attention to UMKM, Indonesia’s economy would not be as trouble as it was now.

The same was expressed by Nina Nursinag, Chairwomen of APINDO. Nina saw that turbulence in Indonesia’s economy due to weakening of Rupiah lately had affected UMKM and IKM quite seriously. The most affected business sector was industries using imported raw materials lije tempe producers using imported soy or automotive industry using imported part.

According to Nina, UMKM were hardboiled entrepreneurs who had strong resistance under any circumstance. But today business people found it hard to access capital, buy raw materials or make profit or execute marketing. Even under the present condition it was hard for them to survive, not to mention to compete.

For the matter, according to Nina, it was necessary for the Government to take sound measures to help UMKM so they would not be shaken by the uncertain market condition. He said that that the pressing thing was to realize aid in financing for UMKM. About KUR credit plan for UMKM for KUR but the pipelining of it was too slow and too late. (SS) 

Business New - September 2, 2015

No comments: