Development of MSMEs still likely amid COVID-19: Minister Masduki

Jakarta Minister of Cooperatives and Small and Medium Enterprises Teten Masduki projected that cooperatives and micro, small and medium enterprises (MSMEs) were still likely to develop in the midst of the COVID-19 pandemic.

“I see several SMEs adapting and doing business to align with new demands. I am optimistic that MSMEs would always remain flexible and dynamic to tap new business opportunities,” Masduki noted in his statement on Tuesday.

The minister pointed to a change in consumer behavior during the COVID-19 emergency and the implementation of large-scale social restrictions (PSBB) in some areas.

Recorded sales in e-commerce from March 2020 continue to rise to 18 percent.

“This is amazing. The stay-at-home policy encourages the sales of primary necessities, where the food and beverage requirements of the community during the PSBB from MSMEs rose 52.6 percent, while school needs rose 34 percent. The requirement for personal protective equipment, such as masks and hand sanitizers, also grew by 29 percent,” Masduki noted.

However, Masduki acknowledged that MSMEs connected with this online market reached only some 13 percent, or around eight million business operators.

In the meantime, the remaining 70 percent are not yet connected since they lack basic infrastructure, including minimal literacy.

The minister called for greater e-commerce penetration, so that MSME products are increasingly sold in the online market and not solely dominated by imported products.

Furthermore, MSMEs not yet connected to the financing system will be able to directly enter the relaxation program. Thus, later on, all SMEs can be connected to the financing system.

 

 

Source: Antara News

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