Lack Of Attention To SMEs Leads To Income Gap

Jakarta (Antara Bali)  - A lack of attention to development of micro small and medium business undertakings has led to an income gap in Indonesia, Minister of Cooperatives, Small and Medium Businesses Anak Agung Gede Ngurah (AAGN) Puspayoga said.

At a function themed "All Business Framework Asia to The World" held at Smesco RumahKU building here on Tuesday, the minister said the income gap has led to high Gini ratio or national inequality ratio in the country.

"Our Gini ratio is still high at around 0.4, while in fact our economic growth is good or is ranked third after China and India. This means that there is something wrong," he said.

The government aims to reduce the Gini ratio from 0.41 to 0.39 this year.

The former Denpasar mayor said the mistake rests with a lack of attention to the empowerment of small and medium entrepreneurs in the country.

"The empowerment effort has so far not touched small and medium entrepreneurs optimally," he said.

He said high economic growth will be meaningless if income is not distributed evenly. In other words, only a handful of people can feel prosperity.

Therefore, he added the ministry will encourage all sides to take part in the empowerment and development of small and medium entrepreneurs in the country through various ways.

The ministry has developed smallholder business credits which carry 9 percent interest for micro business agents.

"I am also convinced that if four aspects -- infrastructure, tourism, energy, and maritime affairs -- work as expected, the economic growth will increase and if small and medium entrepreneurs are developed there will be evenly distribution of welfare. The high economic growth will be meansingless if there is no evenly distribution of income," he said. (WDY)