Ahad 30 Aug 2015 14:37 WIB

UMKM core of Indonesian economy

Rep: C09/ Red: Julkifli Marbun
illustration (Republika/Agung Suprianto)
illustration (Republika/Agung Suprianto)

REPUBLIKA.CO.ID, JAKARTA -- The government was asked to strengthen the micro, small and medium enterprises (UMKM) to face the economic slowdown. Executive Director of INDEF, Enni Sri Hartati, said that the government still only focuses on large-scale business operators.

"The micro, small and medium enterprises should be strengthened. It was like UMKM can become helper for Indonesia economy," she said,  in in Cikini, Saturday (29/8).

Therefore, UMKM sector in Indonesia economic structure is amounted to 99 percent. Providing maximum support to UMKM will encourage economic growth. It is because UMKM have potential to drive the growth of local economy.

"For example, when the economy slowed down, so the tax holiday and tax allowance is issued, but there’s no policy to support UMKM from the government," she explained.

Government policies that was given to large businesses was understandable. It was because of its contribution to GDP, which reached over 50 percent.

Although it can not be used as a reason for the government to turn the UMKM aside. UMKM can boost Indonesia's economic growth to be stable and not easily collapse.

"Pillars of the economic growth should not be one-sided. All sectors should have similar treatment," she added.

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