MSME Activities Affect Tourism and Creative Economy Sector

Sunday, 27-June-2021 16:00

illustration: an eco-print shoemaker uploads a photo of his product in Malang
Image : ANTARA FOTO/Ari Bowo Sucipto/hp.
illustration: an eco-print shoemaker uploads a photo of his product in Malang

JAKARTA, NETRALNEWS.COM - Muhammad Neil El Himam, Deputy for Digital Economy and Creative Products at the Indonesian Ministry of Tourism and Creative Economy, says micro, small, and medium enterprises (MSME) will have a direct impact, particularly in the tourism and creative economy sectors.

"Tourism and creative economy are like two inseparable sides of a coin. They affect each other, particularly creative economy actors, which according to Law No. 24/2019, is defined as the added value of intellectual property based on science, technology and cultural heritage, " Neil said at an online discussion on Sunday (06/27/2021).

Furthermore, Neil explained that at least 97 percent of employment in Indonesia is in the MSME sector, and 70 percent of tourism and creative economy businesses are MSMEs.

"MSMEs play an important role in improving the national economy, with the contribution of the MSME sector to gross domestic product (GDP) of 61.07 percent in 2020. The contribution target in 2021 is expected to reach 62.36 percent, and rise to 65 percent by 2024," he said.

For information, based on Focus Economy Outlook 2020 data, the creative economy contributed IDR 1.100 trillion to Indonesia's GDP throughout 2020.

Neil said that Indonesia was ranked third in the world after the United States (US) and South Korea for national GDP from contributions in the creative economy sector. Thus, there is still great opportunity and hope for MSME actors to contribute to the national economy.

"To achieve that goal, the role of the creative economy is expected to help revive the MSME sector," he added.

Regarding this role, Neil said that the creative economy indirectly directs and tries to create reliable entrepreneurs in various fields.

"The foundation of a business is human resources and natural resources,  which are internal factors, coupled with innovation and creativity that add value to the produced products so they can compete," he said, as reported by Antara.

Reporter : turkhan
Editor : turkhan