KONTAN.CO.ID – JAKARTA. The government will exempt taxes for micro, small and medium enterprises (MSMEs) over the next six months. This tax exemption was carried out as a stimulus for MSMEs amid the corona virus pandemic (Covid-19).
This tax stimulus can keep the business continuity of UMKM maintained. “Earlier it was submitted that the tax abolition for MSMEs for six months was canceled,” said the Minister of Cooperatives and SMEs Teten Masduki after a limited meeting on Wednesday (15/4).
Teten said, SMEs became an important sector for the economy in Indonesia. The contribution of MSMEs to gross domestic product (GDP) reached 60% and employment up to 97%.
The majority of businesses in Indonesia are also at the MSME level of up to 99%. More specifically, the figure of 89% is microenterprise.
Credit restructuring for micro and ultra micro businesses under Rp 10 million is a concern for the government. In addition to loan restructuring, there is also a proposal to increase capital for micro businesses.
“The president asked earlier, not the matter of relaxation, but the addition of new capital, because in this micro sector, we are already struggling, breathing is gone,” explained Teten.
Therefore, there will be a distribution of credit for business capital. The distribution will use various schemes both through savings and credit cooperatives to fintech with funds not only from the State Budget but also from the people’s business credit program (KUR).