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The Progress of MSMEs Growth in West Papua

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The Indonesian government supports West Papua and Papua enterprises through strategic programs announced in Gernas BBI ‘Binar Digital Papua’.

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Micro, small, and medium enterprises received much attention from the Indonesian government. All entrepreneurs throughout Indonesia, including West Papua, hold major roles in the country’s economic growth. In achieving such a goal, the government continues to make a serious effort to increase MSMEs’ product competitiveness and provide financial support.

During the ‘Proud of Indonesian Products’ National Movement (Gernas BBI) event in Papua, Minister of Communication and Informatics Johnny G. Plate said that Papua is a blessed land. It has various kinds of natural beauty and cultural wealth that attract many people worldwide and has plenty of MSMEs and MEs potential.

The minister wanted to make the region able to produce superior fashion, culinary, and craft products. To achieve that, the Ministry of Communication and Informatics continues to establish digital infrastructure and a digital ecosystem in the form of the microwave link, fiber optic, internet access, base transceiver station, and satellite throughout Indonesia, including West Papua.

This year, the ministry is planning to assist 110 MSMEs and MEs business owners and 200 tourism and creative economy business players. There will be sustainable MSMEs training, English as a Second Language training via digital platforms for tourism business owners, and digital literacy for people in West Papua and Papua.

Jokowi Gave Out Business Identification Number

At the event, President Jokowi was also present. He gave out Business Identification Number (NIB) to all MSMEs business owners that were present in Toware Sports Center, Jayapura.

In his speech, the President stated that there were 64 million MSMEs in Indonesia. But, there were only 1.8 million who received NIB from the Ministry of Investment. Because of this, those small businesses in the region need more support from the government as they take an important role in Gross Domestic Product (GDP).

With the identification number, business players are legalized and entitled to bank capital access. The capital access includes People’s Business Credit (KUR) which offers a 3% interest rate. The President continued that the government helped make the minimum interest rate available for small business players in Papua and West Papua. It is to ensure the rapid growth of their businesses.

Jokowi also advised people in business to make precise and detailed calculations before deciding to take a loan. He warned that the loan should not be used for entertainment and luxury items but only to grow their business.

‘Proud of Indonesian Products’ Movement in Papua and West Papua

Plate said that the national economic growth was 5.44 percent in the second quarter of 2022. And the eastern regions of Indonesia gave the biggest contribution to the growth. That was also why the event was held in Jayapura and was entitled “Binar Digital Papua.”

The government support for local business owners was meant to help them compete during a hard time of Covid-19. Therefore, the event was held to support local brands to maximize branding strategies, optimize marketing efforts using digital technology, and urge consumers to buy domestic products.

The peak event included the MSMEs products exhibition, Papua dance and Papuan artists’ performance, fashion show, and Binar Digital Papua formal ceremony. The Papuan Coffee Festival initiated by the Bank of Indonesia (BI) also helped enliven the event.

The event was held starting from August 23-27, 2022. Tifa dance from Hen Tecahi Abepura dance studio and Pangkur dance from Papua Melanesia dance studio were performed to start the event.

In addition to Jokowi and Plate, there were Coordinating Minister of Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Tourism and Creative Economy Sandiaga Salahudin Uno, and Governor of Bank of Indonesia Perry Warjiyo who were present online.

The festival was held as part of the Indonesian government’s efforts to help grow West Papua and Papua’s economy.