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Friday, December 3, 2021

SMEs As A Solution To The National Economic Revival Of ASEAN Countries From Covid-19

 

Small and Mid-size Enterprises (SMEs) have recently become the hottest topic discussed by the government and businessmen because this business sector is considered capable of improving a country’s economy, is that right? Various countries are starting to stimulate and encourage SMEs to become a developed business sector. One of them is through the United Nations Commission on International Trade Law (UNCITRAL) forum which is discussing the formation of legislative guidelines aimed at developing SMEs and then can be adopted by many countries. Let’s take a closer look at SMEs. In terminology, SMEs is a business that maintains revenues, assets, or many employees below a certain threshold, in The European Union (EU) Small-sized Enterprise as a company with fewer than 50 employees, Medium-sized Enterprise with less than 250 employees, and Micro Enterprise with up to 10 employees. every country has its terminology, name, an abbreviation such as Small and Mid-size Enterprise (SME) commonly used in European Union (EU), Small-to-Mid-Size Business (SMBs) in the United States (US), short for Micro, Small, and Medium-sized Enterprise (MSME) in Kenya, Micro, Small and Medium Enterprise Development (MSMED) in India, Micro, Small, Medium Enterprise (MSME) in Indonesia or popular with abbreviation UMKM. SME is commonly used in The World Trade Organization (WTO), US, and EU.

Southeast Asian countries that are members of the Association of Southeast Asian Nations (ASEAN) such as Indonesia, Brunei, Cambodia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam consider SMEs to be the main force and very important to encourage the Asian economy. in Southeast Asia, with 97% of the business world and absorbing 97% of the national workforce from 2010 to 2019, SMEs also contributed an average of 41% of Gross Domestic Product (GDP) in each country in the same period, according to Yasuyuki Sawada as chief economist at The Asia Development Bank (ADB) challenges that are still facing ASEAN countries include development that is still focused on the domestic market and the level of entrepreneurship that is still not optimal, as well as the impact of the Covid-19 pandemic which has hampered the economies of many countries, according to the GDP Survey. stated that 48.6% of SMEs were temporarily closed in Indonesia, in Laos 61%, in Thailand 41% Etc. For example in Indonesia, the supply of domestic demand has decreased by 30.5% even though the government has taken various ways to restore the national economy through the National Economic Recovery Program (PEN), the government-assisted Rp. 114.81 trillion which includes interest subsidies of Rp. 13, 43 trillion, cooperative funds of IDR 66.99 trillion, SMEs credit loans of IDR 3.2 trillion, DTP Final PPh Tax of IDR 1.08 trillion, LPDB MSME financing of IDR 1.29 trillion, and Presidential grant of IDR 28.81 trillion.

 The reasons why SMEs are important for the country’s economy include individual utilization;

-In terms of capital, it does not always depend on outside capital, but it can develop with the strength of its capital.

-Flexible, in the sense that if you face obstacles in running your business, you will easily move to another business.

-SMEs are spread throughout the country with business activities in various sectors, are facilities and distributors of goods and services in serving the needs of the community.

-In the case of loans (especially small-scale entrepreneurs in certain sectors such as traders) they can repay loans with high interest rates.

KHOIRUL ANAM
My Name Is Khoirul anam I'm From Sampang Madura east java Indonesia, The Owner of ANM Enterprise_id, a personal Company in farming production and packaging product. The President and founder of (Telecommunicate Eleven Virtual) TEV Official an organization focused on education, training and Personal Development.

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