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Writer's pictureWimpow Panjaitan

Economy - Micro and Small Enterprises

Micro and Small Enterprises are the people's business, the nation's business, their role is very large, the strength of Micro and Small Enterprises is the economic strength of the nation and state.


Both in big cities and small towns, Micro and Small Enterprises are a source of income. Even during the 1998 economic crisis, Micro and Small Enterprises were a source of saving the country, while the conglomerates were causing harm to the state, micro and small enterprises actually helped the country's economy.


The state then paid attention to Micro and Small Enterprises with the establishment of the Ministry of Cooperatives and Small and Medium Enterprises, besides that banking products and capital institutions also accommodated many Micro and Small Enterprises.


The profile of Micro and Small Enterprises in Indonesia can be seen from the data published by the Ministry of Cooperatives and Small and Medium Enterprises and the Central Statistics Agency, both before the pandemic and during the current pandemic.


Data from the Ministry of Cooperatives and Small and Medium Enterprises


On the official website of the Ministry of Cooperatives and Small and Medium Enterprises https://www.kemenkopukm.go.id/data-umkm , the latest data on the development of micro and small businesses has not been updated yet, it is still data for 2018-2019, but from this data alone it shows the number of Micro Business units more than 64 million, while Small Enterprises numbered nearly 8 hundred thousand business units, these figures then show that Micro and Small Enterprises have a market share of more than 99% of all business units in Indonesia.


The number of workers involved in Micro and Small Enterprises is more than 110 million people, a very large number. The value of the gross domestic product (GDP) of Micro and Small and Medium Enterprises, is 9,580 Trillion Rupiah or 60% more.

Central Statistics Agency Data


Data from the Central Statistics Agency regarding the Micro and Small Business Industry updated in 2020, showing that the share of added value for the Micro and Small Industry is more on the island of Java by 43%, specifically in East Java by 12.69%. However, during the pandemic in 2020, the Micro and Small Business Industry experienced negative growth, which grew 5.66% in 2018, 5.8% in 2019, but in 2020 it was negative 17.63!.


As much as 7.06% of the Micro and Small Business Industry was closed as a result of the pandemic, while 11.25% had to temporarily close without production.


Closing

Even though the conditions during the 1998 economic crisis were different from the conditions during the pandemic, Micro and Small Enterprises can still be relied upon in building the nation's, state and people's economy, because basically Micro and Small Enterprises are the Profession of Warriors, never give up, with the support of all parties, both the Government , Big Entrepreneurs etc., God willing, with the permission of Allah Azza wa Jalla, Micro and Small Businesses will rise again and return to normal, becoming Big Businesses.

Wallahu a'lam bishawab

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