Wow, 60 Percent of MSMEs in Indonesia Have No Business License

By : Ahmad Fadli And Aldi Firhand. A | Monday, November 20 2017 - 23:28 IWST

Ministry of Cooperatives and SMEs (Photo: onenews)
Ministry of Cooperatives and SMEs (Photo: onenews)

INDUSTRY.co.id - Sumedang - Although the number of micro small medium enterprises (MSMEs) in the country continues to grow, but apparently there are still many who do not have permission. recorded, out of a total of about 56.7 million MSMEs in Indonesia, 60 percent of whom do not have permits.

"Of the 56.7 million MSMEs, 98 percent are micro-enterprises," said Head of Education and Training Center for Apparatus I of State Administration Institution (PKP2A I LAN), Hari Nugraha in Sumedang, Sunday (19/11/2017).

Hari said, unlicensed MSMEs will have difficulty accessing various capital assistance and capacity building in Indonesia. Finally, various facilities and assistance are received by the same MSMEs.

"Earlier SOEs story, our difficulty difficult to find a licensed UMKM. When there is both financial and capacity support, it gets it all over again. Like the study abroad to the exhibition, who participated, that again, that again, "he said.

One of the problems is the motivation of UMKM which is difficult to move. They already feel enough with their achievement. Therefore, what should be pursued is not just data problems but also mentoring.

"There is a need for assistance so that they are aware that what is done is not just for data collection but to promote Indonesia," he said.

To solve this licensing problem, an application named Sinta UMKM or Integrated License System for MSMEs was established. Sinta UMKM is a quick win of national reform related to licensing.

In this application there is permit information, how to access various information, including funding needs and capacity of UMKM.

This system will be implemented nationally and coordinated by leading sectors related to SME licensing in the region. The plan, this application began collecting in 2018.

"Bappenas is very supportive. Later they will help. The most important of these programs is the synergy of 12 agencies. Because it can no longer find partial solutions per agency. But coordinate the synergy, "he said.

This program, continued Hari, can grow UMKM. Currently, UMKM is able to absorb 90.12 percent of the national workforce. UMKM contributes 3.74 percent of Gross Domestic Product (GDP) from micro business

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