Should University Role enterprises provide Assistances to Small and Medium Enterprises?

 

Article 21 states that:

 A. Central Government and Local Government provide financing for Micro and Small Enterprises;

 B. State-owned enterprises provide financing from the allowance for the share of annual profits allocated to Micro and Small Enterprises in the form of loans, guarantees, grants, and other financings.

 C. National and foreign Large Enterprises provide financing allocated to Micro and Small Enterprises in the form of loans, guarantees, grants, and other financings. 

D. The Central Government, Regional Governments, and the Business World provide grants, seek foreign assistance, and seek other legal and non-binding sources of financing for Micro and Small Enterprises. 

E. The Central Government and Regional Governments following their respective authorities provide incentives in the form of ease of licensing requirements, reduced tariffs for facilities and infrastructure, and other forms of incentives following the provisions of laws and regulations to the Business World providing financing for Micro and Small Enterprises INDUSTRY.co.id - MSMEs play an important role in the economy. 

The large number is one of these potentials. Based on data from the Ministry of Cooperatives and Small and Medium Enterprises (KemenkopUKM) in March 2021, the number of MSMEs reached 64.2 million with a contribution to Gross Domestic Product of 61.07 percent or Rp. 8,573.89 trillion. Absorbing very large bank funds. Minister of Cooperatives and SMEs Teten Masduki said the absorption of bank credit for MSMEs as of May 2021 had reached Rp 1.024 trillion; The absorption of labor by MSMEs is also very high. The Ministry of Cooperatives and Small and Medium Enterprises (UKM) noted that the workforce absorbed by MSME businesses was 119.6 million people in 2019. This number increased by 2.21% compared to the previous year which was 117 million people. This amount is equivalent to 96.92% of the total workforce in Indonesia. The remaining 3.08% are from big businesses. From the data above, it is undeniable that the existence of MSMEs is the creator of the exchange of goods and services. The UMKM business causes the purchase of raw materials and auxiliary materials, the purchase of tools and machinery, the use of transportation modes, fuel, banking credit, property provision, the use of labor, the stall business and so on. The next side effect is that when recruiting workers, these workers have income and this income can be spent on various needs. The pandemic has also made MSMEs increasingly important because many big players are consolidating. We all know that many large businesses have closed, while many MSME businesses have sprung up, although not a few have had to close. MSMEs do not yet have high competitiveness. Even when compared to MSMEs from Thailand and Vietnam, Indonesia is still difficult to compete. Not to mention there are issues of entrepreneurship, funding, innovation and technology, human resources and markets. In fact, it is often found that MSMEs compete with each other unfairly. Taking into account this very important role and the many problems faced by MSMEs, MSMEs need to be "accompanied" so that they can improve their performance, including Higher Education (PT) must be friends for them. Then what are the roles that PT can play in supporting and creating a healthy ecosystem for MSMEs? According to the opinion of Mr. Faisol Riza – Chairman of Commission VI DPR RI – which was conveyed at the Seminar on the Role of MSMEs in Creating Healthy Business Competition, which was organized by the Entrepreneurship Study Program of Podomoro University, PT can play a role in several things as follows. Become a counterpart for the government and banks/investors The government has been very clear on its side in developing MSMEs. Government Regulation of the Republic of Indonesia Number 7 of 2021 concerning Ease, Protection, and Empowerment of Cooperatives and Micro, Small, and Medium Enterprises shows this. Not to mention the policies such as the National Economic Recovery (PEN), People's Business Credit (KUR), budget, facilitation, and assistance provided by the government are also very numerous and continue to be inflamed. Banks are also very committed to supporting MSMEs. However, because of the many problems in lending, many banking funds have not been absorbed by MSMEs. For this reason, PT can play a role as a counterpart to the Government and Banking, including investors, so that government programs and banking funds can be realized. PT can provide socialization, and assist the government in the development of production, finance, human resources, and marketing. PT can be a friend of banks in preparing MSME financial institutions and reports so that they can become bankable institutions. There are still many things that need to be done by PT so that MSMEs can overcome funding problems. Be a source of innovation and technology PT is a source of knowledge, knowledge and  technology. Through basic research activities, applied research, and development research, universities can produce innovations and technologies that can be utilized by MSMEs. To realize that, PTs need to have a research roadmap where the results are expected to be applied by MSMEs. This technology is not only in the form of tools, and products, but also related to services, institutional strengthening, human resources, social engineering, policy texts, and business plans. Although basic research, this research needs to be directed to be applied and developed by MSMEs. For example, how MSMEs can play a role in the electric car industry, research related to batteries, expertise, products, and electric car maintenance needs to be initiated and carried out by PT, which can later be applied and developed by MSMEs. Become an MSME companion One of the Tridarma of PT is Community Service (PKM). PTs can create a community service roadmap that makes MSMEs their strategic partners. This assistance can be done terms of strengthening leadership, institutions, entrepreneurship, management, and business cooperation.

  Reference: https://www.industry.co.id/read/98149/peran-perguruan-tinggi-dalam-meningkatkan-persaingan-yang-sehat-di-umkm