Legislator from the Gerindra party is pushing for the Ministry of Tourism and Creative Economy (Kemenparekraf) to simplify regulations on capital for Micro, Small, and Medium Enterprises (UMKM) in Indonesia. The move comes as a response to the challenges faced by UMKM in accessing funding, which has been exacerbated by the impact of the COVID-19 pandemic.
UMKM are a vital part of Indonesia’s economy, contributing significantly to employment and economic growth. However, many of these businesses often struggle to obtain the necessary funding to start or expand their operations. The complex and burdensome regulations surrounding capital for UMKM have made it difficult for entrepreneurs to access the financial resources they need to thrive.
Legislator from the Gerindra party believes that simplifying regulations on capital for UMKM will help to stimulate economic growth, create more job opportunities, and improve the livelihoods of many Indonesians. By streamlining the process of obtaining funding, UMKM will be able to access the financial resources they need to innovate, expand, and compete in the market.
The push for regulatory reforms also aligns with the government’s efforts to boost the tourism and creative economy sectors, which have been hit hard by the ongoing pandemic. By making it easier for UMKM in these industries to access funding, the government aims to support their recovery and enable them to contribute to the overall growth of the economy.
The Ministry of Tourism and Creative Economy has welcomed the proposal from Gerindra legislators and has expressed its commitment to working towards simplifying regulations on capital for UMKM. The ministry recognizes the importance of empowering UMKM in the tourism and creative economy sectors and is dedicated to creating a more conducive environment for their growth and development.
Overall, the push to ease regulations on capital for UMKM in Indonesia is a positive step towards fostering a more inclusive and dynamic economy. By simplifying the process of obtaining funding, UMKM will be able to thrive and contribute to Indonesia’s economic recovery and growth. It is hoped that these regulatory reforms will create more opportunities for UMKM to succeed and play a vital role in driving the country’s economic development.
