Collaboration for Strengthening MSMEs is the Key to Accelerating Recovery

Indonesia plays an important role in promoting world policies that promote collaboration of various parties as the key to realizing an inclusive world economy, including including MSMEs in global value chains.

This has become one of the issues discussed by the members of the B20 business forum, especially in the Trade and Investment Task Force, in line with the focus of the discussion of the 2022 G20 forum led by Indonesia.

Co-Chair of Trade & Investment Task Force B20 2022 Juan José Daboub said the Covid-19 pandemic which lasted for two years had a very large impact on the economy in various countries, including Indonesia. For the first time at the G20 event, Indonesia has the opportunity to form an inclusive world economic policy, by including the involvement of all parties, including helping MSMEs.

, who served as the Daboub managing . director of the World Bank in 2006-2010, assessed that Indonesia has strong capital to lead discussions related to economic recovery in various international forums Indonesia has proven to have succeeded in getting through the Covid-19 pandemic crisis and was able to rise and recover faster than many other countries, thus earning appreciation from the World Bank (World Bank). Throughout 2021, Indonesia's GDP growth will increase to 3.7%. Even in 2022, the World Bank estimates that Indonesia's GDP growth will increase again to 5.2%.

This success, continued Daboub, cannot be separated from the government's role in good macroeconomic management and the implementation of the National Economic Recovery (PEN) program. "Indonesia's macroeconomic and fiscal policies can serve as an example for other countries, as they reflect the flexibility to adapt without disrupting discipline over the years," said Daboub, who is also a member of the board of directors of Philip Morris International (PMI).

Currently, a number task forces are finalizing the discussion of policy recommendations to be submitted to the G20. The B20 Forum which consists of various international scale companies is one of the engagement groups of the G20. Daboub said that PMI together with other members under the leadership of Arif Rachmat, as C hair Trade & Investment Task Force B20, are currently working on various policy recommendations related to economic recovery efforts. In addition, participating in finalizing the discussion of joint action steps as a form of commitment by B20 members to support the G20 in empowering MSMEs.

According to him, although most of the B20 policy recommendations are addressed to the government, as business players, the B20 group can also provide concrete examples of collaboration, global cooperation, and dialogue between stakeholders regarding policies and good business practices to encourage accelerated recovery. and stabilization of the global economy, as directed by President Joko Widodo.

One of the initiatives of the Trade and Investment Task Force B20 2022 to support the targets of the G20 Indonesia Presidency is related to the real role of business players in B20 to encourage digital transformation, as well as expand MSME access so that they can compete, and become part of the global supply chain through the Inclusive Closed Loop Ecosystem B20 .

Daboub stated that the MSME sector is the lifeblood of the Indonesian economy. According to him, business actors can play an important role in realizing an inclusive economic commitment through partnerships with MSMEs and collaboration with various parties, including the government, to equip MSMEs with knowledge, skills, technology and networks to increase competitiveness, both domestically and in the domestic market. global value chain.

PMI is one of the companies that supports the B20 initiative in increasing the capability of MSMEs. PMI affiliate in Indonesia, PT HM Sampoerna Tbk, has developed more than 160,000 MSME grocery stores that are members of the Sampoerna Retail Community (SRC). Through various programs, SRC member grocery stores are encouraged to adapt digital technology to help business development and increase competitiveness.

"Through the B20 forum, we also contribute, both in providing advice and sharing experiences regarding our real efforts in supporting business actors to digitize MSMEs to be more competitive and not left behind in economic growth. Collaboration between business actors and MSMEs also requires full support from the government, in the form of inclusive policies and programs, involving all stakeholders,” said Daboub.

Separately, the General Chair of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjad Rasjid agreed on the importance of developing Indonesian MSMEs in increasing capacity in the digital era so that inclusive economic growth can be realized.

Evidently, referring to data obtained by Kadin, of the 12.5% of Indonesian MSMEs that have implemented an online during the Covid-19 pandemic in 2020-2021, all of them are not affected by the economy. Even 27.6% of them showed an increase in sales.

Arsjad revealed that MSMEs have an important and strategic role in the structure of the Indonesian economy. This is because 99.99% of business actors in Indonesia are MSMEs with employment up to 97% and contributing to national GDP of 61.97%.

Therefore, the role of the private sector, especially corporations, to collaborate with the government is very much needed so that MSMEs are more competitive in the digital era as it is today. "Assistance from big business actors and the government can reduce the burden of challenges for MSME actors, for example, such as capital assistance," said Arsjad.

Kadin is also doing the same thing as a form of direct participation in realizing the spirit of inclusive economic growth. "Currently, the Indonesian Chamber of Commerce and Industry is encouraging the strengthening of partnerships, synergies, and collaborations between MSMEs and big businesses in the industrial supply chain," he said.

Moreover, MSMEs cannot be separated from the current dynamics where the business world is entering the Industry 4.0 era. Everything is integrated via digital. "Kadin Indonesia hopes that MSMEs can overcome the challenges they have faced so far, such as access to capital and raw materials, access to marketing including penetrating the export market as well as expanding the coverage area through digitalization," he explained.

In its role as the organizer of Business Forum , Kadin invites all G20 member countries to participate in a dialogue on formulating solutions for recovery and strengthening the global economy. It is hoped that more investment will enter Indonesia to accelerate the recovery and movement of the national economy.

The common thread is innovation and collaboration. “Collaborations between governments, communities and business associations from different countries and industry categories will provide input from a rich and diverse perspective. It is hoped that in the future it will be followed by concrete actions and policies that can be implemented for the realization of an inclusive economy," he said.