The Importance of the Role of MSMEs on the Indonesian Economy As one of the pillars of the Indonesian economy, MSMEs have a significant role, namely as follows:
1.
MSMEs have a large contribution to GDP which is 61.97% of the total national GDP or equivalent to
Rp. 8,500 trillion in 2020.
2.
MSMEs absorb a large amount of labor, which is 97% of the absorption of the business world by 2020.
The number of MSMEs is directly proportional to the number of jobs in Indonesia so that MSMEs have
a large share in the absorption of labor.
3.
MSMEs absorbed the largest credit in 2018 amounting to approximately Rp. 1 trillion
According to Tulus Tambunan in his book entitled Micro Small and Medium Enterprises in Indonesia, there are
several reasons that raise the importance of MSMEs for the national economy:
1.
The number of MSMEs is very large and spread in urban and rural areas even to remote corners.
2.
MSMEs are classified as very labor intensive, have the potential for large job opportunity growth and
increased income.
3.
MSMEs are widely found in the agricultural sector that indirectly supports development.
4.
MSMEs help in accommodating many workers who have a low level of education.
5.
In conditions of economic crisis, MSMEs are able to survive, as happened in 1997/1998.
6.
Become the starting point of investment mobility in the countryside as well as a forum for the
improvement of self-employed capabilities.
7.
Become a tool to shift the consumption expenditure of rural residents into savings.
8.
MSMEs are able to provide relatively cheap necessities.
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