UMKM vs. Covid-19
Help from government; Bantuan bagi Pelaku Usaha Mikro (BPUM)
The government has distributed productive assistance to micro business actors worth IDR 2.4 million to 12 million Micro, Small and Medium Enterprises (MSMEs) entrepreneurs throughout 2020.
Assistance for Micro Business Actors (BPUM) of IDR 2.4 million is part of the National Economic Recovery (PEN) program due to the Covid-19 pandemic.
will end in January 2021
conditions to earn this
nationality: Indonesian
having Identity Number (NIK)
owning a micro business
not having the status of ASN, TNI / Polri, as well as BUMD / BUMN
not currently receiving credit or financing from banks and People's Business Credit (KUR)
Definition
BPUM is government assistance in the form of money provided to micro-entrepreneurs originating from the State Revenue and Expenditure Budget.
BPUM is given once in the form of money in the amount of Rp2,400,000.00 (two million four hundred thousand rupiah) for Micro Business actors who meet certain criteria which are channeled directly to the account of the BPUM recipient.
steps for distribution of BPUM (alr in order)
designation of recipients
disbursement of BPUM funds
data cleaning and data validation of potential recipients
disbursement reports
proposing prospective recipients
UMKM
Definition
small companies owned and managed by a person or owned by a small group of people with a certain amount of wealth and income
Criteria
micro business
asset [not including land and building]: max IDR 50 million
turnover (omzet) [a year]: max IDR 300 million
small business
asset: more than IDR 50 million - IDR 500 million
turnover (omzet) [a year]: more than IDR 300 million - IDR 2,5 billion
medium sized business
asset: more than IDR 500 million - IDR 10 billion
turnover (omzet) [a year]: more than IDR 2,5 billion - IDR 50 billion
big business
asset: more than IDR 10 billion
turnover (omzet) [a year]: more than IDR 50 billion
covid-19 impact on economy
MSMEs have an important role in the defense of the nation's economy. According to BPS data for 2017, MSME business units occupy 99.9 percent of the total business units in Indonesia with a total of 62.9 million business units according to Bank Indonesia. Not only that, MSMEs absorb 96.9 percent of the total employment and contribute 60.34 percent to Indonesia's gross domestic product (GDP).
(https://kompaspedia.kompas.id/baca/paparan-topik/kebijakan-perlindungan-dan-pemulihan-umkm-di-tengah-pandemi-covid-19)
The Indonesia economy has started to recover gradually but unevenly across sectors. With weak economic demand, there is a limit to what monetary policy can do. Instead, an expansive fiscal policy has become important.
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covid19 impact on umkm
decreased sales, capitalization, stunted distribution, difficulty in raw materials, decreased production and layoffs of workers,