Illustrative image (Photo: CNN Indonesia) Jakarta (VNA) – Only 6.3 percent of the total small- and medium-sized enterprises (SME) of Indonesia are able to join the trade chain in Southeast Asia, which is far below the rate in other countries, according to economist Eisha Maghfiruha Rachbini from the country's Institute for Development of Economics and Finance (INDEF).
The economist pointed out that the ratio of Malaysian SMEs engaging in global value chains or trade chain in Southeast Asia is 46.2 percent, while that of Thailand is 29.6 percent, Vietnam 21.4 percent, and the Philippines 20.1 percent.
Meanwhile, only 52 percent of large-scale firms of Indonesia joins regional trade chain, only higher than that of the Philippines at 51.1 percent. The ratio is highest in Thailand with 91.1 percent, followed by Malaysia at 82.4 percent, and Vietnam 64.6 percent.
Indonesian Minister of Cooperatives and Small and Medium Enterprises Teten Masduki earlier said that difficulties in financial access have lowered productivity and competitiveness of SMEs.
This has also contributed to the stagnant business situation with expansion of only 3.4 percent, he said.
He also stressed the need to design support policies to increase macro, small and medium-sized enterprises (MSME)’s access to financial resources, especially banks, to ensure about 30 percent of the MSMEs access the resources in the next three years./.
The economist pointed out that the ratio of Malaysian SMEs engaging in global value chains or trade chain in Southeast Asia is 46.2 percent, while that of Thailand is 29.6 percent, Vietnam 21.4 percent, and the Philippines 20.1 percent.
Meanwhile, only 52 percent of large-scale firms of Indonesia joins regional trade chain, only higher than that of the Philippines at 51.1 percent. The ratio is highest in Thailand with 91.1 percent, followed by Malaysia at 82.4 percent, and Vietnam 64.6 percent.
Indonesian Minister of Cooperatives and Small and Medium Enterprises Teten Masduki earlier said that difficulties in financial access have lowered productivity and competitiveness of SMEs.
This has also contributed to the stagnant business situation with expansion of only 3.4 percent, he said.
He also stressed the need to design support policies to increase macro, small and medium-sized enterprises (MSME)’s access to financial resources, especially banks, to ensure about 30 percent of the MSMEs access the resources in the next three years./.
VNA
