Economy in 2020 Has Much Pressure, Strengthens the MSME Sector

IMPERIUMDAILY.COM – JAKARTA – The Provincial Government of DKI Jakarta is asked to strengthen the micro small and medium business sector (MSME) to deal with economic conditions in 2020. This is inseparable from the development of the global economy which makes the economy will get a lot of pressure due to the trade war between the United States and China.

“Economic conditions in Jakarta are inseparable from global economic developments. 2020 will be a lot of pressure. Our attitude must be careful, strengthen MSMEs, and remain optimistic,” said University of Indonesia Economist Anton Hendrananta in Jakarta, Saturday (21/12) night in a discussion organized by the Jakarta Chamber of Commerce and Industry.

According to him, the current economic conditions in Jakarta have begun to be affected by the trade war which caused such uncertainty. One result of this is that several buffer countries in the Asian region are correcting their economic growth targets.

China and Japan only target single-digit economic growth in 2020. In fact, these two countries often record double-digit economic growth
“If conditions are still as they are now, the world economy is expected to return to recession most quickly in 2021. Therefore, there is still time for economic actors and policy makers in Indonesia to make preparations,” he explained.

Meanwhile, Anton said, besides strengthening the MSME sector, the importance of ending the commodity business and strengthening the processed industry in order to provide added value to the economy. Anton also asked DKI Jakarta Province to give more flexibility in trying to encourage investment.

According to his notes, investment in recent years has tended to decline.
Meanwhile, Chairperson of the DKI Jakarta Kadin Diana Dewi hopes that the absorption of the DKI Jakarta Provincial Budget can be optimized, so that the results can also be felt by members of the DKI Jakarta Kadin.

“I hope the DKI Jakarta Provincial Government is more pro-MSME,” Diana said.
She appointed Perda Number 2 of 2018 concerning Market which required 20 percent of the available space to be given to MSMEs for free. This regulation then gets a lawsuit to be canceled.

“For us it does not need to be free. But it is enough to provide clear rules to make it easier to try,” said Diana.

Diana also hopes that financial authorities can provide loans with affordable interest rates and subsequently prepare clear tax policies for businesses.(top/ant)

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