SME and Entrepreneurship Policy in Indonesia 2018 by OECD

Author:OECD
Language: eng
Format: epub
Tags: governance/regions/industry/employment
Publisher: OECD Publishing
Published: 2018-10-09T16:00:00+00:00

There are two main factors that hinder a full SME policy portfolio analysis in Indonesia. First, the SME policy budget, which is developed by BAPPENAS and the Ministry of Finance, is distributed across a large number of ministries and agencies, each of which has an “SME Policy Package” prepared by the relevant Co-ordinating Ministry (mostly the Co-ordinating Ministry for Economic Affairs). Second, an effective co-ordinating mechanism to calculate total spending allocation by programme activity is currently missing.

On the whole, however, there are signs that government spending on SMEs has declined for some programmes and increased for others in recent years. For example, spending by the Ministry of Co-operatives and SMEs was IDR 971 billion in 2017, down from IDR 1.49 trillion in 2015 (Ministry of Co-operatives and SMEs, 2017; 2016). By the same token, the Ministry of Industry’s budget for the “Small and Medium Industry Growth and Development Programme” was IDR 258 billion in 2017 (i.e. 8.14% of the Ministry’s total budget), down from IDR 530 billion in 2016 (i.e. about 13.5% of the Ministry’s total budget) (Ministry of Industry, 2017; 2016). On the other hand, the budget of the KUR Programme (i.e. Kredit Usaha Rakyat, or People’s Business Credit Programme) has been ramped up since a reform in 2015 which added an interest rate subsidy on top of the original loan guarantee of the programme (see chapter 5 for more details).

A preliminary illustration of how the policy portfolio analysis could be approached in Indonesia uses the example of the budget of the Ministry of Co-operatives and SMEs (Table 4.3 and Table 4.4).

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.