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class="jeg_meta_category"> <span><span class="meta_text">in</span> <a href="https://heaptalk.com/category/expert-talk/" rel="category tag">Expert Talk</a> </span></div></div><div class="meta_right"> <div class="jeg_meta_comment"><a href="https://heaptalk.com/expert-talk/indonesias-msmes-against-the-economic-global-recession/#comments"><i class="fa fa-comment-o"></i> 0</a></div></div></div></div></div><div class="jeg_featured featured_image"><a href="https://heaptalk.com/wp-content/uploads/2022/12/19122022-expert-talk-1.jpg"><div class="thumbnail-container animate-lazy" style="padding-bottom:50%"><img width="1140" height="570" src="data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==" class="lazyload wp-post-image" alt="global recession" decoding="async" fetchpriority="high" data-src="https://heaptalk.com/wp-content/uploads/2022/12/19122022-expert-talk-1-1140x570.jpg" data-sizes="auto" data-expand="700"/></div><p class="wp-caption-text">Ronald Roger Rohrohmana, President Director of Ants Energy Indonesia and MSMEs activist</p></a></div><div class="jeg_share_top_container"></div></div></div><div class="row"> <div class="jeg_main_content col-md-8"> <div class="jeg_inner_content"> <div class="jeg_ad jeg_article jnews_content_top_ads"><div class='ads-wrapper'></div></div><div class="entry-content with-share"> <div class="jeg_share_button share-float jeg_sticky_share clearfix share-monocrhome"> <div class="jeg_share_float_container"><div class="jeg_sharelist"> <a href="https://www.facebook.com/sharer.php?u=https%3A%2F%2Fheaptalk.com%2Fexpert-talk%2Findonesias-msmes-against-the-economic-global-recession%2F" rel='nofollow' class="jeg_btn-facebook expanded"><i class="fa fa-facebook-official"></i><span>Share on Facebook</span></a><a href="https://twitter.com/intent/tweet?text=Indonesia%E2%80%99s%20MSMEs%3A%20An%20Economic%20Wave%20Breaker%20Against%20the%20Rising%20Tides%20of%20Global%20Recession&url=https%3A%2F%2Fheaptalk.com%2Fexpert-talk%2Findonesias-msmes-against-the-economic-global-recession%2F" rel='nofollow' class="jeg_btn-twitter expanded"><i class="fa fa-twitter"><svg xmlns="http://www.w3.org/2000/svg" height="1em" viewBox="0 0 512 512"><path d="M389.2 48h70.6L305.6 224.2 487 464H345L233.7 318.6 106.5 464H35.8L200.7 275.5 26.8 48H172.4L272.9 180.9 389.2 48zM364.4 421.8h39.1L151.1 88h-42L364.4 421.8z"/></svg></i><span>Share on Twitter</span></a><a href="https://www.pinterest.com/pin/create/bookmarklet/?pinFave=1&url=https%3A%2F%2Fheaptalk.com%2Fexpert-talk%2Findonesias-msmes-against-the-economic-global-recession%2F&media=https://heaptalk.com/wp-content/uploads/2022/12/19122022-expert-talk-1.jpg&description=Indonesia%E2%80%99s%20MSMEs%3A%20An%20Economic%20Wave%20Breaker%20Against%20the%20Rising%20Tides%20of%20Global%20Recession" rel='nofollow' class="jeg_btn-pinterest"><i class="fa fa-pinterest"></i></a> <div class="share-secondary"> <a href="https://www.linkedin.com/shareArticle?url=https%3A%2F%2Fheaptalk.com%2Fexpert-talk%2Findonesias-msmes-against-the-economic-global-recession%2F&title=Indonesia%E2%80%99s%20MSMEs%3A%20An%20Economic%20Wave%20Breaker%20Against%20the%20Rising%20Tides%20of%20Global%20Recession" rel='nofollow' class="jeg_btn-linkedin"><i class="fa fa-linkedin"></i></a></div><a href="#" class="jeg_btn-toggle"><i class="fa fa-share"></i></a></div></div></div><div class="content-inner"> <p><em>The public-private partnerships (PPPs) scheme has proven to provide many advantages for <a href='https://heaptalk.com/govact/genpro-and-east-kutai-govt-foster-msmes-to-penetrate-domestic-and-foreign-markets/' title='Genpro and East Kutai Govt foster MSMEs to penetrate domestic and foreign markets'>MSMEs</a>, including access to capital, managerial expertise, and improved access to markets.</em></p> <p><strong>Heaptalk, <a href='https://heaptalk.com/govact/jakarta-will-remain-the-capital-for-several-more-years/' title='Jakarta will remain the capital for several more years'>Jakarta</a> —</strong> The current <a href="https://heaptalk.com/news/east-ventures-outlook-toward-indonesias-digital-economy-in-2023.html">economic outlook</a> for 2023 is uncertain. As with all economic forecasting, any predictions about what the future may hold are only speculation and should be taken with a grain of salt. However, some economists have suggested that a recession could occur in 2023. One of the primary causes of the upcoming global recession in 2023 is the increasing economic inequality between nations.</p> <p>As economic disparities in access to resources between nations increase, the ability of economies to remain stable and prosperous decreases. In addition, the growing trade war between major economic powers, ongoing conflicts, and pandemics have further destabilized global and regional markets. The rise in global debt levels is another factor that could cause the impending recession in 2023.</p> <p>The last global economic recession was the 2007 Recession, which started in December 2007 and lasted until June 2009. Dubbed the “Great Recession,” it was caused by a combination of factors, including a housing market crash, overleveraged financial institutions, and tightening credit markets. The recession had a significant impact on the global <a href='https://heaptalk.com/news/be-familiar-with-gig-economy-and-the-trend-works-without-jobs/' title='Be Familiar with GIG Economy and The Trend Works Without Jobs'>economy</a>, leading to reduced <a href='https://heaptalk.com/govact/the-government-is-optimistic-for-indonesias-economy-will-grow-by-52/' title='The government is optimistic for Indonesia’s economy will grow by 5,2%'>economic growth</a> in many countries, increased unemployment, and business closures.</p> <p>During this period, <a href='https://heaptalk.com/govact/indonesia-to-amplify-partnership-with-united-states/' title='Indonesia to amplify partnership with United States'>Indonesia</a>’s unemployment rate increased dramatically, reaching 9.2% in 2009. This was the highest unemployment rate in the country since the Asian Financial Crisis in the late 1990s. The recession also had a significant impact on Indonesian micro, small, and medium-sized enterprises (<a href="https://heaptalk.com/news/supporting-green-economy-bappenas-held-digital-grounds-to-boost-digital-transformation-for-msmes-and-startups.html">MSMEs</a>).</p> <p>According to the <a href="https://www.worldbank.org/en/home">World Bank</a>, the economic downturn caused a decrease in the demand for <a href='https://heaptalk.com/govact/genpro-and-east-kutai-govt-foster-msmes-to-penetrate-domestic-and-foreign-markets/' title='Genpro and East Kutai Govt foster MSMEs to penetrate domestic and foreign markets'>MSMEs</a>’ goods and services, resulting in a drop in revenues and an increase in layoffs. Many MSMEs also had difficulty accessing credit and other financial services due to the crisis. The government of Indonesia responded to this crisis with a variety of measures, such as providing financial support, expanding access to credit, and providing technical assistance. These measures helped to stabilize the <a href='https://heaptalk.com/govact/east-kutai-holds-an-msme-bazaar-in-tepian-langsat-boosting-intercommunity-transactions/' title='East Kutai holds an MSME bazaar in Tepian Langsat, boosting intercommunity transactions'>MSME</a> sector, and many MSMEs were able to survive and even thrive as the <a href='https://heaptalk.com/news/be-familiar-with-gig-economy-and-the-trend-works-without-jobs/' title='Be Familiar with GIG Economy and The Trend Works Without Jobs'>economy</a> began to recover.</p> <p>Currently, Indonesia’s MSMEs are well-positioned to break the rising tide of a potential global economic recession in 2023. MSMEs contribute significantly to Indonesia’s <a href='https://heaptalk.com/news/be-familiar-with-gig-economy-and-the-trend-works-without-jobs/' title='Be Familiar with GIG Economy and The Trend Works Without Jobs'>economy</a> and account for a large portion of its GDP. MSMEs make up 98.5% of the total number of businesses in Indonesia and account for 60% of the nation’s employment. In addition to providing employment, MSMEs are also a major contributor to the country’s GDP, generating approximately 37% of its total output. MSMEs are also more agile and can respond to changing market conditions more quickly than larger companies.</p> <p>As such, the Indonesian government should focus on providing support to the <a href='https://heaptalk.com/govact/east-kutai-holds-an-msme-bazaar-in-tepian-langsat-boosting-intercommunity-transactions/' title='East Kutai holds an MSME bazaar in Tepian Langsat, boosting intercommunity transactions'>MSME</a> sector, such as access to financing. Access to financing for MSMEs in Indonesia has been a challenge for many years due to the lack of available capital and the difficulty in obtaining bank loans. In recent years, the government has taken steps to improve access to financing for MSMEs, such as providing incentives and tax benefits to encourage banks to lend to small and medium-sized businesses. Additionally, the Indonesian government has developed an online platform, the Indonesian SME Financing Marketplace, to provide easier access to funds for MSMEs. This platform allows MSMEs to connect with financial institutions and potential investors, allowing them to find the best financing options for their business.</p> <p>However, despite these efforts, MSMEs in Indonesia still face challenges in accessing financing. Many MSMEs are still unable to obtain the necessary funds to expand their business, due to the high interest rates charged by banks and other financial institutions. Additionally, many MSMEs still lack the necessary collateral to secure loans, making it difficult for them to access financing.</p> <p>MSMEs in Indonesia still face many challenges in obtaining financing, and the government must continue to invest in initiatives to help MSMEs increase their access to finance. To help Indonesian MSMEs access financing, various initiatives such as providing training and technical assistance to develop business plans and financial projections could be provided through a public-private partnership (PPP) scheme. Public-private partnerships (PPPs) have been increasingly popular in Indonesia as a way to support small and medium-sized enterprises (MSMEs). PPPs offer many advantages for MSMEs, such as access to capital, managerial expertise, and improved access to markets. In Indonesia, PPPs have been used to help MSMEs in a variety of sectors, ranging from <a href='https://heaptalk.com/expert-talk/dr-riyadh-firdaus-digital-transformation-to-materialize-equal-healthcare-access-in-indonesia/' title='Digital transformation to materialize equal healthcare access in Indonesia'>healthcare</a> to <a href='https://heaptalk.com/insight/welcoming-2024-here-are-the-technology-trends-prediction-in-2024/' title='Welcoming 2024, Here are the technology trends prediction in 2024' target='_blank'>technology</a>.</p> <p>In the healthcare sector, PPPs can provide MSMEs with access to much-needed capital, as well as management and marketing expertise. For example, the Indonesian government has established a number of public-private health insurance partnerships, which provide MSMEs with access to affordable health coverage. In the technology sector, PPPs can help MSMEs access the latest cutting-edge technologies. For example, the government has established a number of public-private partnerships with tech companies to provide MSMEs with access to the latest technologies. These partnerships have also helped to spur innovation in the technology sector, creating new opportunities for MSMEs.</p> <p>Overall, PPPs offer a number of advantages for MSMEs in Indonesia. They provide access to capital, managerial expertise, and improved access to markets. Additionally, they help to spur innovation and create new opportunities for MSMEs. For these reasons, PPPs are an important tool for helping MSMEs to succeed in Indonesia.</p> <p>This collaboration could support MSMEs create more resilient and innovative businesses that will be better able to withstand the potential impacts of a global recession. Additionally, the Indonesian government should consider policies that promote the growth and <a href='https://heaptalk.com/govact/east-kutai-regent-urges-regional-apparatuses-to-accelerate-the-development-in-2023/' title='East Kutai Regent urges regional apparatuses to accelerate the development in 2023'>development</a> of MSMEs, such as tax incentives and other forms of financial assistance. By supporting MSMEs, Indonesia can help create a better, more resilient economy and guard against a potential global recession in 2023.</p> <p>In addition to MSMEs, Indonesia can also strengthen its resilience against the forecasted 2023 global recession by focusing on building a strong and diversified economy. This could include investing in infrastructure, such as roads and bridges, to ensure efficient <a href='https://heaptalk.com/govact/east-kutai-transportation-dept-seeks-scholarship-program-cooperation-with-the-ministry/' title='East Kutai Transportation Dept seeks scholarship program cooperation with the Ministry'>transportation</a> of goods and services. Additionally, the country can encourage foreign direct <a href='https://heaptalk.com/industry/apple-adds-investment-offer-of-100m-to-bring-iphone-16-to-indonesia/' title='Apple adds investment offer of $100m to bring iPhone 16 to Indonesia'>investment</a> to create more jobs and increase domestic consumption. Finally, Indonesia can prioritize education reform and <a href='https://heaptalk.com/industry/pidi-4-0-bridging-innovation-and-human-resources-to-shape-the-future-workforce/' title='PIDI 4.0: Bridging innovation and human resources to shape the future workforce'>workforce</a> development to help the country become more competitive in the global market.</p> <p>The resilience of Indonesia’s MSMEs through the years is a testament to their importance to the nation’s economy. With their continued support, Indonesia will be able to withstand the economic challenges posed by the global recession and emerge stronger than ever before.</p> <p>Source: Ronald Roger Rohrohmana, President Director of Ants <a href='https://heaptalk.com/govact/jokowi-downstream-in-the-energy-sector-boosts-added-value-for-the-national-economy/' title='Jokowi: Downstream in the energy sector boosts added value for the national economy'>Energy</a> Indonesia and MSMEs activist</p> <div class="jeg_post_tags"><span>Tags:</span> <a href="https://heaptalk.com/tag/ants-energy-indonesia/" rel="tag">Ants Energy Indonesia</a><a href="https://heaptalk.com/tag/ronald-roger-rohrohmana/" rel="tag">Ronald Roger Rohrohmana</a></div></div></div><div class="jeg_share_bottom_container"></div><div class="jeg_ad jeg_article jnews_content_bottom_ads"><div class='ads-wrapper'></div></div><div class="jnews_prev_next_container"></div><div class="jnews_author_box_container"></div><div class="jnews_related_post_container"><div class="jeg_postblock_21 jeg_postblock jeg_module_hook jeg_pagination_disable jeg_col_2o3 jnews_module_7477_0_6741dedd9a977" data-unique="jnews_module_7477_0_6741dedd9a977"> <div class="jeg_block_heading jeg_block_heading_6 jeg_subcat_right"> <h3 class="jeg_block_title"><span>Related<strong> Posts</strong></span></h3></div><div class="jeg_block_container"> <div class="jeg_posts jeg_load_more_flag"><article class="jeg_post jeg_pl_sm format-standard"> <div class="jeg_thumb"> <a href="https://heaptalk.com/expert-talk/dr-riyadh-firdaus-digital-transformation-to-materialize-equal-healthcare-access-in-indonesia/"><div class="thumbnail-container animate-lazy size-715"><img width="120" height="86" src="data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==" class="lazyload wp-post-image" alt="Dr. dr. 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