June 29, 2020, 04.22 PM

JAKARTA, KOMPAS.com – The number of Indonesian small and medium enterprises (SMEs) gaining access to social assistance programs is expected to increase.

Indonesian SMEs are considered the most affected sector during the coronavirus pandemic, and the government predicts that a significant number will be unable to weather the coronavirus pandemic without assistance.

Read also: The Covid-19 Crisis and Its Domino Effect on Indonesia

Minister of Indonesian Cooperatives and SMEs Teten Masduki confirmed the outlook.

“There are 40 surveys about the impact of Covid-19 on SMEs around the world which expects around 50 percent of SMEs will close,” said Teten.

The figure is troubling considering the impact Indonesian SMEs can have in salvaging the Indonesian economy.

SMEs were deemed to be the lifesaver of Indonesia’s national economy during the 1998 Asian Financial Crisis.

“At the time, SMEs were the heroes of the national economy because they recorded a 350 percent growth in exports,” said Teten.

Unlike the Asian Financial Crisis, the coronavirus pandemic has posed limitations on the free movement of people.

Therefore, the existence of Indonesian SMEs has been put at risk especially since most depend on daily income.

Page:


Comment wisely and responsibly. Comments are entirely the responsibility of the commentator as regulated in the ITE Law
Report
Thank You! We have received your report. We will remove comments that conflict with the Community Guidelines and the ITE Law.

More Headlines

News
May 20, 2022, 07.35 PM

Jakarta Car-Free Day to Resume Sunday

Views
May 20, 2022, 02.42 PM

What to Expect From Biden's Trip to Asia

News
May 12, 2022, 07.22 PM

President Joko Widodo Arrives in the US

Close Ads