Jakarta: Indonesia is currently creating an integrated Micro, Small, and Medium Enterprises (MSMEs) database, MSMEs and Cooperatives Development Director at the National Development Planning (PPN) Ministry/National Development Planning Agency (Bappenas) Dading Gunadi stated.
"One of the MSMEs' issues is database that is still not integrated between several ministries, institutions, and regional governments," he noted during the G20 side event webinar here on Monday.
"To this end, the government designs integrated MSMEs database development since last year by involving various ministries and institutions," he added.
The G20 is an international forum comprising 19 countries that work together to handle major issues. Indonesia is holding the G20 Presidency this year.
The ministry has started gathering data related to MSMEs from all districts and cities in Indonesia until two years into the future.
In addition to data, MSMEs also encounter issues in the form of low cooperation with big businesses included within the global value chain.
This is apparent from the data indicating that 93 percent of micro and small businesses are not involved in cooperation with big businesses and new MSMEs contribute 14 percent to Indonesia's total exports.
"Moreover, 88 percent of micro and small businesses cannot apply banking credit," Gunadi stated.
"As a result, banking credit distribution to new MSMEs only reaches around 20 percent from the total credit distribution or it has stagnated since 2014," he added.
Some 94 percent of micro and small businesses have not yet used computers to run their businesses and 90 percent have not yet used the internet.
The government continues to push the digitalization of MSMEs, especially amid the COVID-19 pandemic, he explained.
Moreover, the government unveils programs to reduce the operational costs of MSMEs that experienced revenue correction during the COVID-19 pandemic.
Examples of such programs include credit interest subsidy, MSMEs credit restructurisation, and tax relaxation.
"Currently, credit restructurisation had been realized for 3.9 million MSMEs in addition to credit interest subsidy for 17.8 million MSMEs," Gunadi stated.