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Economy in brief: Govt to boost SMEs industrialization
The government is set to issue fiscal policies to boost the industrialization of small and medium enterprises (SMEs)
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The government is set to issue fiscal policies to boost the industrialization of small and medium enterprises (SMEs).
On Tuesday, Finance Minister Sri Mulyani Indrawati said the policies would, among others, include a tax holiday and tax allowances for investments below Rp 500 billion (US$35.5 million).
“We will design incentives that are focused on the export-oriented labor-intensive industry,” she said after a meeting at the State Palace in Jakarta.
Sri Mulyani added that the policies would be issued in several weeks time. With industrialization, she hoped that Indonesia could grow while feeling less vulnerable on the balance deficit.
“Industrialization is important to build resilient economic growth. So when we grow high, we will not be hindered by a deficit in the current account and balance of payment,” she said.
SMEs are key business entities that drive economic growth in Indonesia.
As of 2017, there are almost 60 million micro and SMEs, which employ over 100 million people in the country.
The government has been encouraging the development of new SMEs as part of its efforts to boost the number of entrepreneurs in the country, which lags behind other Asian countries such as Singapore, China and Japan.
