UI Rector, Ari Kuncoro: Productive Social Assistance Deliver Advantages for MSMEs


UI Rector, Ari Kuncoro: Productive Social Assistance Deliver Advantages for MSMEs

Hana Fajria – Public Relations of FEB UI

Depok – (7/10/2020) Professor Ari Kuncoro, Rector of Universitas Indonesia, as a guest speaker at the Indonesia Talk in Media Indonesia event, discussed “The Stalled Realization of MSMEs Social Assistance Funds: How to Overcome the Challenge?” Together with the Vice President of the Republic of Indonesia, KH. Ma’ruf Amin as a resource person, this event was hosted by Usman Kansong, Chair of the Media Group Editorial Board, on Wednesday (7/10/2020).

The government conducts observations to ensure that social assistance (bansos) can actually be used to develop micro, small and medium enterprises (MSMEs). In addition to MSME Bansos, social assistance for consumption and productive social assistance to develop businesses are also distributed.

“The goal of social assistance is so thatĀ  the economy continues to grow. For now, the funds that drive the economy come from the government. The private sector is currently stagnant. ā€ said Vice President of the Republic of Indonesia Ma’ruf Amin. Therefore, he expects the social assistance to reach MSME playersĀ  to improve their productivity and re-accelerate the economic sector. This former chair of the Indonesian Ulema Council (MUI) said that previously, there was a discussion to hold back half of the productive social assistance funds from Rp2.4 million to only Rp1 million. However, to accelerate theĀ  economy, all social assistance funds were then disbursed. “This is applied through the observation that social assistance is actually being used to stimulate MSME sectors.” he said.

A large number of micro and small businesses affected by the Covid-19 outbreak have temporarily closed their businesses, even going bankrupt. If the government does not provide any assistance, the number of poor families will increase. Therefore, the government issued assistance for micro-entrepreneurs for Rp 2.4 million per person.

“With social assistance, data and production systems are recorded. Opening an account for social assistance can increase financial inclusion, so that obstacles arising from a lack of capital can be overcome. MSMEs are not only part of economic activities but also part of a socio-cultural reality. Data analytics is possible by immersing into the data. With the currentĀ  challenging conditions, this data immersionĀ  prepares us for the actions needed to copewith the situation.” Prof.Ari said.

“Supplying production with a stimulus for MSMEsĀ  means consolidating for economic development. The current momentum can be used to help MSMEs in reviving the economy and also improving data collection. If it is successful, Indonesia can become a role model in managing MSMEs for other countries.ā€ Prof. Ari concluded his session. (hjtp)