Book Review Hosted in UNS, ‘MSME Financing’ by the Coordinating Minister for the Economy
The Coordinating Minister for the Economy, Republic of Indonesia, in collaboration with the Faculty of Economics and Business (FEB), Universitas Sebelas Maret (UNS), and Rajagrafindo Persada Publisher, hosted a General Lecture and ‘MSME Financing’ Book Review at Haryo Mataram Auditorium UNS, Thursday (20/10/2022).
The Vice-Rector for Academic and Student Affairs UNS, Prof. Dr. Ir. Ahmad Yunus, M.S., in his remarks, conveyed his gratitude to the Coordinating Minister for Economy for establishing a partnership with UNS by organizing the General Lecture and Book Review.
Prof. Yunus reveals that the book written by the Coordinating Minister for Economy, Republic of Indonesia, Dr. (H.C.) Ir. Airlangga Hartarto, M.B.A., M.M.T., I.P.U., discuss five topics, including the role of MSMEs on the economy, MSME resilience to crises, MSME financing, sharia financing for MSME, and MSME financing during the COVID-19 pandemic.
He also states that UNS, as one of the State Universities as Legal Entity (PTNBH), actively took a role in MSMEs development and empowerment. This active role is not limited to an embodiment of the Higher Education Tri Dharma but also implemented as a strategic action in empowering MSMEs through collaboration, partnership, and appreciation to MSMEs entrepreneurs, as well as providing assistance for student entrepreneurship activity.
In his keynote speech, Dr. (H.C.) Ir. Airlangga Hartarto revealed that the current occasion was conducted to support MSME development and disseminate MSMEs’ funding channels to the wider community to support Indonesia’s sustainable economic development.
The book, released on 11 November 2021, contains various information and experiences in MSMEs development. MSMEs become one of the development pillars of Indonesia’s economy during the pandemic, to the point of sustaining the pandemic crisis.
“Consistent treatment on the Covid-19 cases has successfully improved community mobility, proven with the community’s confidence in resuming their economic activities. This condition also triggers MSMEs’ business activity improvement.
Further, he explained that MSMEs are a crucial key for economic activities, with a 61% contribution to GDP and 97% of the national employment rate, while at the same time stimulating investment and export rates. Investment in MSME accounted for 60% of the total national investment and contributed to 16% of non-oil and gas export.
In order to maintain the economic recovery momentum and MSMEs’ empowerment, the government initiate a development strategy along with increasing access to MSME funding.
The President of Indonesia has provided his instruction to increase bank lending allowance for MSMEs up to 30% by 2024 or equal to 1,800 trillion Rupiah, and Bank Indonesia has issued the Regulation of Bank Indonesia for this matter. The Kredit Usaha Rakyat (KUR-Community Business Lending) has been implemented by the government.
The Coordinating Minister for the Economy hopes this book will improve academic members’ knowledge in determining policy and for the students to monitor and evaluate the policies implemented for the MSMEs. The book is also expected to strengthen the synergy and coordination in MSMEs’ empowerment to accelerate and take advantage of the economic recovery momentum.
Meanwhile, during the opening of the book review discussion, Dr. Iskandar Simorangkir, S.E., M.A., Deputy of Macroeconomics and Finance Coordination, states that through the Regulation of ‘Cipta Kerja’ No 11 of 2020 and Government Regulation (PP) No 77 of 2020, regulate on how the government encourages MSMEs in Indonesia to improve their quality, through business permit registration. Until September 2022, there are 1.7 million micro business units receiving Business Identification Numbers (NIB) via single online submission (OSS).
“MSMEs need support, first by encouraging them to meet the required quality, not only for national sales but also international sales, and second is by involving them in big corporation products to establish a mutual synergy. Therefore, it is expected that MSMEs can improve their quality and increase their income. If we can implement this, indeed, we will be a developed country,” he said.
Concluding his discussion, Dr. Iskandar Simorangkir invited the participants, consisting mostly of students, to create new jobs by establishing new businesses starting as MSMEs and not stopping as job seekers only.
The General Lecture and Book Review, led by Devi Setyorini, a Junior Expert Policy Analyst at the Coordinating Ministry for Economy, as moderator, invited three speakers, namely Dr. Ferry Irawan, SE, ME., Assistant Deputy for Monetary and External Sector, Gede Edy Prasetya S.E., M.M., Assistant Deputy for Capital Markets and Financial Institutions, Coordinating Ministry for Economy, and Prof. Dr. Izza Mafruhah, S.E., M.Si., the Vice-Dean for Academic, Research, and Student Affairs FEB UNS. (Humas)
The material in this event can be downloaded from the uns.id/umkmfebuns