Teten Masduki’s Strategy to Modernize Cooperatives and SMEs

Jakarta

Modern cooperatives will be born through the expansion of the cooperative business model and the use of technology, including through digitalization. Through modernization in the form of digital technology, cooperatives are believed to be able to carry out business strategies more effectively and efficiently without losing their characteristics.

“Digitalization is a form of adaptation to the changing economic ecosystem. However, cooperatives are required to be more creative and responsive to the development of the business world,” said Minister of Cooperatives and Small and Medium Enterprises (SMEs), Teten Masduki to the Outspoken Team detikcom, Wednesday (27/10/2021).

During the pandemic, he continued, the number of digitally connected MSMEs reached 16.4 million. This number increased rapidly from the previous only 8 million in 10 years. “So there is an acceleration because like it or not, MSMEs are forced to go digital. Because they can no longer sell offline. So now, I think the trend is quite good,” said Teten.

Another thing on his agenda as Minister of Cooperatives and SMEs is to strengthen access to financing and guarantee cooperatives with a larger capital scheme. Also application good corporate governance cooperatives through an integrated monitoring system and cooperative HR development.

Mindset entrepreneurship These cooperative activists must also continue to develop themselves, because cooperatives like it or not must be able to compete with corporations,” said Teten.

Through this series of efforts, he is determined to use cooperatives as an instrument to consolidate micro-enterprises, so that they can enter the global economy. Thus, it is hoped that they will be able to gain access to greater capital to develop their businesses to be able to compete with corporations.

Now he assesses that there are still many financial institutions that provide loans to micro-enterprises, and there are even parties who only provide loans charity as a form of concern for SMEs. Such things must be addressed immediately so that cooperatives and SMEs are truly able to support the national economy so that it is not fragile.

“The President has ordered that the portion of MSME banking credit must increase to above 30% by 2024. Currently we are still below 20%. Singapore alone for MSME banking credit is already above 39%. Malaysia and Thailand are above 50%. South Korea 81%,” said Teten.

(eng)

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