REPUBLIKA.CO.ID, JAKARTA -- Small and medium enterprises (SMEs) are the best instruments to achieve economic equality and justice, if various parties, including financial institutions and the Finance Ministry, support their growth and development, Indonesia's ex-vice president Boediono stated.
"SMEs are indeed the best mechanism to attain economic equalization. There are indirect ways, such as taxes and retributions, but if we sustain SME's advancement directly, economic fairness can be achieved without the need to use these efforts," Boediono stated during Bank Indonesia's awards night at the head office, Wednesday evening.
Boediono, who also served as the 13th governor of Bank Indonesia, remarked that the establishment and development of SMEs will ensure that the added value of Indonesian citizens will be more uniform.
He believes that a coherent mindset along with cooperation between all parties is necessary for SMEs to achieve success rather than solely relying on the Ministry of Cooperatives and SMEs.
According to Boediono, five strategies have been formulated for the development of SMEs in the ASEAN, with the first being to promote the productivity of technology and innovation.
The second strategy focuses on opening greater access to the budget. Boediono believes that there is still room for all parties, especially banks, to get involved and play their part in facilitating credit distribution for SMEs.
Third on the list is access to the market. SMEs should be able to operate on an international level instead of just having access to the local markets.
"SMEs should not be facing tougher obstacles than bigger enterprises. For instance, by making the licensing process easier," Boediono emphasized.
The last strategy prioritizes improving entrepreneurial skills.
President Joko Widodo had earlier called to increase the number of businesses, affirming that Indonesia needed millions of new entrepreneurs.
In 2014, it was reported that the total number of micro-, small-, and medium-scale enterprises in Indonesia had reached over 57 million.
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