Temporary Special Treatment for MSMEs

Providing additional stimulus for micro, small and medium enterprises (MSMEs) may protect our economy amid the new coronavirus outbreak.

KOMPAS/ISMAIL ZAKARIA

Passengers of Bahamian-flagged MV Columbus browse souvenirs on offer by micro, small and medium enterprises (MSMEs) on Tuesday (10/3/2020) at the passenger terminal of Gili Mas Port in Lembar, West Lombok, West Nusa Tenggara. Just like Albatros, which arrived on Monday (3/9/2020), Columbus was allowed to berth after the cruise ship, its crew and 1,027 passengers were declared clear of COVID-19 infection.

Micro, small and medium enterprises (MSMEs) have a strategic role in the economy. A 2017 data from Statistics Indonesia (BPS) showed that MSMEs accounted for 99.9 percent of Indonesian businesses, or amounting to 62.9 million business units according to Bank Indonesia. MSMEs absorb 96.9 percent of manpower, 89 percent of which are micro businesses, and contribute 60.34 percent to the gross domestic product (GDP).

Thus far, MSMEs have proven their resilience in difficult economic situations. Most MSMEs remain disconnected from the domestic, let alone global, financial sector. Because of this, MSMEs have always survived through global financial crises, including in 1998 and in 2008.