Minister Confident Indonesian MSMEs Will Survive 2023 Recession

TEMPO.CO, Jakarta - Indonesia's Cooperative and SME Minister Teten Masduki is optimistic that MSME players can survive the threat of a recession in 2023. He referred to how the MSME industry managed to survive the Covid-19 pandemic by continuing to innovate.

"During the pandemic, our MSMEs succeeded with innovations, both product innovation and transformation from offline to digital. This is a strong basic capital to build optimism in facing next year's crisis," Teten said in a press conference at his office, Monday, December 26.

The minister said that Indonesia's economic growth stood at 5.7 percent in Q3/2022, supported by household consumption by 54 percent.

This condition, he said, proved that the domestic market is still an opportunity for MSMEs to survive in a time of crisis. In addition, people's purchasing power and inflation are still considered to be at safe levels.

Teten said that the government is also planning to revise next year's export target in a bit to anticipate the impact of the global recession. The government will also divert export products to the domestic market.

To ensure a successful market transfer, Teten said, the government will limit the entry of imported products. That way, Indonesian products, including those made by MSMEs, can thrive in the domestic market.

RIANI SANUSI PUTRI

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