Rupiah Depreciation Opens Opportunities for Small Enterprises

TEMPO.CO, Jakarta - The depreciation of rupiah against the US dollar has benefited micro, small and medium enterprises, as long as they can maximize the use of local raw materials and produce export-oriented goods, Enny Sri Hartati, an economist at the Institute for Development of Economics and Finance (Indef) said on Friday, March 13, 2015.

Enny explained the rupiah exchange rate that dropped to Rp13,176 per US dollar should be anticipated by small business owners by creating innovations.

“Small and medium businesses have been able to survive during the crisis many years ago,” Enny said.

Prasetyo Atmosutidjo, the chairman of the Small and Medium Enterprises Community in Yogyakarta, called on small and medium enterprises to expand their business both in domestic and foreign market. He also called on the government to provide them with assistance, for example by preparing an incentive package for exporters.

“When a country’s currency is depreciated, its exports will increase. Unfortunately, the Indonesian government’s attention is only focused on importers,” Prasetyo said.

Bank Mandiri president director Budi Gunadi Sadikin said the micro industry grew by 33.2 percent last year, as a result of an increase in micro loan customers by 119,000. In 2014, Bank Mandiri’s loan for small and medium enterprises increased by 13.6 percent to Rp73.4 trillion (US$5.6 billion).

DEVY ERNIS | P. WICAKSONO | ODELIA S.| TRI ARTINING P. | RR. ARIYANI