Indonesian President Recognizes MSMEs' Economic Contribution to Indonesia

At an event in Jakarta, Indonesian President Joko on March 7 emphasized the importance of MSMEs. He disclosed that there are about 65 million MSMEs in Indonesia, which contribute 61% to Indonesia's Gross Domestic Product (GDP).

Joko praised the critical role of MSMEs and asked government departments and financial institutions to provide them with more support so that they could have more opportunities to grow.

The President of Bank Danamon, Sunasol, identified MSMEs as a key driver of Indonesia's economic development. He pointed out that Indonesia's transformation from a low-income country to a middle-income country was driven by MSMEs. He emphasized that against the current backdrop of increased global economic uncertainty, Indonesia's economy still had the potential to grow, and one of the main drivers remained MSMEs.

The same view was expressed by Indonesia's Minister of Finance, Silly Muliani, who noted that 97% of Indonesia's jobs are created by MSMEs. This percentage is quite high compared to other countries. However, she also mentioned that Indonesia's share of MSMEs in bank credit is only 20%, which is still low compared to other countries.

The head of Indonesia's MSME sector also made remarks, stating that the difficulties faced by MSMEs in obtaining bank financing were mainly due to the lack of collateral and the fact that many MSMEs were not yet connected to the banking services system.

Therefore, industry experts have called on Indonesian banks and financial institutions to help MSMEs increase their credit ratio and reduce their lending rates.

Sources of information:Jakarta, China News Agency (Editor: Wang Dong)