JAKARTA, TheIndonesiaPost – The government has agreed on five priorities for the protection and economic recovery of the micro, small, and medium enterprises (MSME) sector. The President asked his staff along with the business world to help MSMEs lend aid and interest subsidies to the ultramocracy business. It is hoped that this special program can help them survive in the midst of the Covid-19 pandemic.
“There are five big favors in the economic protection and recovery program, changing in the micro, small and medium business sector, including special programs for micro-businesses and micro-businesses that have not been in touch and cannot be accessed by financial institutions in banks,” he said. President Joko Widodo, as reported by the presidential team.
The President said that proves the first is intended for small and medium-sized businesses that fall into the category of poor and vulnerable affected by Covid-19. Business actors exclude a portion of recipients of social assistance from the government.
“We have to make sure that this goes to the recipient of social assistance, including PKH (Family Hope Program), food packages, cash assistance, village BLT (direct cash assistance), and also exemption from electricity tariffs and the Employment Card,” said President.
The next scheme, which is issuing the second, talks about the tax incentives needed for MSME actors with a turnover of under Rp. 4.8 billion per year. Against them, the government has reduced the final PPh tariff for six months.
“Here the government has reduced the final PPh rate for MSMEs from 0.5 to 0 percent over the six-month period from April to September 2020,” the President said.
Meanwhile, the relaxation and restructuring of MSME loans became part of the three allocations prepared by the government. This scheme is published in English for users of KUR (People’s Business Credit), UMi (Ultramicro Credit), PNM Mekaar (National Madani Capital, Fostering a Prosperous Family), LPDB (revolving fund management agency), to beneficiaries of capital assistance from several submissions.
“I also request that this program lend installments and interest subsidies that are approved for micro-businesses receiving aid from local governments,” the President said.
In addition, the government will also impose an increase in financing for MSMEs which consists of stimulus for working capital assistance as part of the expenditure that has been prepared. In this budget, the government is preparing emergency working capital assistance specifically designed for MSME spending that is experiencing Covid-19 difficulties.
Until now, there have been 41 million MSME players connected to financial institutions or banks. However, there are still 23 million MSME participants who have never received funding from financial institutions or the banking system.
“Therefore, the 23 million MSMEs must obtain a program from obtaining working capital financing. For those whose bankable distribution will be through programs taken, people’s business loans will encourage financial inclusion. Whereas for those who are not bankable, the distribution can be through umi, Mekaar, and other program schemes. , “said the President.
As for the Fifth Scheme, the Government through Ministries, SOE Institutions, and Regional Governments will act as a buffer in the MSME ecosystem, primarily in the Recovery Stage and business card center of the Pandemic Covid -19 taxable income.
“This is very important. For example, SOEs or BUMDs become off-takers (absorbers) for the production of MSMEs in the fields of agriculture, fisheries, culinary, to the home industry,” said the President.
The Head of State also returned his ranks in the regions to reallocate the budget and direct it to economic stimulus programs that opened up the MSME sector. With all the steps and efforts made by President Joko Widodo, he hopes that SMEs will be able to survive and continue to carry out their production activities both during and after the Covid-19 pandemic ends. (ojan / bbs)
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