TNP2K and World Bank Underscore SME Importance in Boosting Welfare

04 December 2014

Small and Medium Enterprises (SMEs) are a source of stable employment, and so need to be supported to access finance and better market information. This was a common theme of a seminar organised by the Secretariat of the National Team for the Acceleration of Poverty Reduction (TNP2K), together with the World Bank on Wednesday (3/12) in Jakarta.

The seminar on "Promoting SMEs as Economic Drivers - Key to Development in Indonesia" was supported by Australia’s Department of Foreign Affairs and Trade and AusAID. Deputy for Poverty, Labour and SMEs at the National Development Planning Agency (Bappenas), Rahma Iryanti, acted as keynote speaker. Also speaking at the event was Wayan Dwi Ardana, Director of SMEs and Cooperatives at the Coordinating Ministry for Economic Affairs.

Ari Perdana, Head of the Cluster III Working Group, said that the SME sector accounts for up to 97% of total employment in Indonesia. As such, they are crucial in creating sustainable poverty reduction strategies. “TNP2K aims to empower SMEs through the strengthening of economic environments, so that SMEs can act as engines for inclusive economic growth, which would improve the welfare of the poor and vulnerable," said Perdana.

In the one-day seminar, TNP2K and the World Bank brought together speakers who interact directly with the SME sector from a variety of backgrounds, including: Deputy of SME Financing at the Ministry of Cooperatives and SMEs, the Mayor of Bogor, senior economists at the World Bank, representatives of the Chamber of Commerce and Industry, Bank Mandiri and private companies as well as SME academics, practitioners and activists. The seminar was attended by around 100 government officials, private companies, academia and the general public. It formed part of a series of seminars and workshops held by TNP2K and the World Bank to encourage SME policy reform.