Sandiaga Uno on Threat of Recession: 'MSMEs Create 97% Jobs'

4 October 2022 09:34 WIB

TEMPO.CO, JakartaTourism and Creative Economy Minister Sandiaga Uno believed the threat of a global recession which is predicted to occur in 2023 can be anticipated with a number of efforts to strengthen micro, small, and medium enterprises or MSMEs.

“It must be resolved by empowering MSMEs. Because 97 percent of our jobs are generated through MSMEs,” said Sandiaga at the Ministry of Tourism and Creative Economy Building on Monday, October 3, 2022.

He explained that a recession occurs when there are no more job vacancies, resulting in mass unemployment. Meanwhile, the supply must be increased when the prices of a number of commodities rise.

The ministry is still calculating the potential impact of the recession and inflation due to the surge in fuel prices on tourism and the creative economy. “It can be released next week,” he added.

For sure, the effects could already be seen in the decline in hotel occupancy rates and tourist spending. “Especially in the consumption of craft souvenirs,” he added. “But we believe that our strength is the domestic economy.”

Minister of Cooperatives and SMEs Teten Masduki previously explained that MSMEs are not spared from the effects of the global recession. If the world experiences a recession, the demand for MSME products will decrease. 

However, as long as people's purchasing power is maintained and there is still a social security program, Teten is optimistic that the demand for MSME products in the country will still be quite good.

RIRI RAHAYU

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