Sales of Indonesian SMEs Plunge by As Much As 60pct during Coronavirus Pandemic

The majority of the smaller businesses that reported higher sales performance were those selling medical gear such as masks or personal protective gear.

Iskandar shared that the pandemic has pushed some Indonesian SMEs to transition to online sales channels.

On the other hand, a staggering 92.6 percent of Indonesian SMEs admitted to facing difficulties in repaying loans.

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Around 26.6 percent of them are unable to pay back any loans.

These obstacles have urged the Indonesian government to issue various policies to revive Indonesian SMEs.

Iskandar said that the Indonesian government has subsidized the interest rate of the People’s Business Credit (KUR) program.

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The government will subsidize the KUR program for another six months or until December 31, 2020.

An added subsidy of 6 percent will be given during the first three months while another 3 percent will be added during the following three months.

Iskandar said that the Indonesian government is focused on supporting Indonesian SMEs amid the coronavirus pandemic as they form the backbone of the national economy. 

(Writer: Yohana Artha Uly | Editor: Sakina Rakhma Diah Setiawan) 

Source: https://money.kompas.com/read/2020/07/15/131013826/hampir-seluruh-umkm-di-indonesia-turun-penjualannya-di-masa-pandemi