Momentum Strengthening Domestic Trade: Covid-19 |

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Micro, Small and Medium Enterprises (MSMEs) have the opportunity to turn things around during the Covid-19 outbreak to strengthen inter-city or inter-island trade in Indonesia amid sluggish foreign trade. The cities and islands in Indonesia must work together to strengthen trade amid sluggish exports and imports in Indonesia.

Imports of raw materials are stagnant due to Corona hampered, MSMEs must be utilized to increase production and release dependence on raw materials from outside, especially since many can still be supplied from within the country.

Likewise, among others, the views raised in the webinar of the Management Study Program at the Faculty of Economics and Business, Universitas Malikussaleh, Monday (05/11/2020). Three presenters were present, the Head of the Bank of Indonesia Representative of Banda Aceh, Zainal Arifin Lubis, Chief Editor of Bisnis Indonesia, Maria Maria Y Benyamin, and Head of the UKM Center at the Faculty of Economics and Business, University of Indonesia, TM Zakir Machmud PhD.

According to Zainal Arifin, the Corona outbreak indeed made it difficult for all parties, including MSMEs . But in difficult conditions there are always opportunities, because many countries that cannot supply raw materials, can be taken over by MSMEs in Indonesia, including Aceh.

"But the government must facilitate this," Zainal Arifin said in a discussion on the Effectiveness of Economic Stimulus on the Business World (MSMEs ) during the Pandemic Period.

He regretted that there were still many people who were reluctant to use MSME products, even for products that were able to be produced by MSME. This condition causes the MSME chain not to live.

The synergy of inter-island and inter-city trade in the country, according to Zainal, has not been managed optimally. Resources in one area can be used as raw materials in another area. He cited the rattan furniture business in Cirebon which was growing rapidly, even though the area did not have raw materials. During this time, raw materials are supplied from outside the region, even from abroad.

"Aceh can be a supplier of raw materials for the furniture industry in Cirebon. In Aceh there are thousands of types of rattan of the highest quality. And the rattan grows wild, not the result of cultivation. But because MSMEs are not strong, the benefits from the supply of raw materials are obtained by traders, "said Zainal Arifin in a webinar guided by the Head of Management Study Program at Universitas Malikussaleh, Dr. H. Mohd Heikal.

Zainal saw that the potential of the domestic market was huge even in the midst of the plague. With a population of 267 million, Indonesia can rely on the domestic market. "If we see a lot of Chinese products that are not very high quality. But it sells because it has its own market,” he said.

Zainal also mentioned the campus cooperative efforts in Aceh in producing hand sanitizers in large capacity and there are already countries that want to buy, like Turkey. "However, there is a temporary ban on exporting hand sanitizers," said Zainal, who considers Aceh's patchouli commodity also an asset that has high export value.

Facing the current economic conditions, added Zainal, imports must be kept as small as possible. Dependence on imports mentioned that many trade activities were hampered, because some countries had locked down so that the distribution process was hampered.

"Sometimes I am sad, there are entrepreneurs who claim to be just importers because they do not need to pay labor. In fact, for goods that can be produced domestically, no need to import. If everything depends on imports, the domestic economy does not grow and BI is also heavy in maintaining rupiah stability,” added Zainal Arifin, alumni of the Faculty of Economics and Business at Syiah Kuala University.

He considered that MSMEs was ready to fill an empty niche due to Covid-19. But the government must facilitate as in the case of regulation, provide assistance and training, and provide consulting services.

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Maria also agreed that international trade could not be relied on in the current conditions, because economic growth was declining in Indonesia's main trading partner countries such as China and the United States. All markets in Indonesia's export destination countries are in a disrupted position.

"The latest data, the Indonesian Manufacturing Index, for the first time in nine years, dropped to around 22.5. Whereas previously above 50. Figures below 50 reflect manufacturing is contracting. Indonesia are the lowest in Asean, under Myanmar,” Maria explained.

According to her, Indonesia must strengthen domestic trade which has extraordinary strength both due to population and natural wealth. "For how long is the pandemic, no one (can) estimate. So strengthening domestic trade is a solution to growth,” Maria said.

The Bisnis Indonesia daily as one of the economic references in Indonesia, he said, focused on raising efforts to cut off the distribution chain. All the stimulus and relaxation set forth in the economic policies of the Covid-19 period, there is no meaning if the chain of distribution has not been broken.

"The money we have is only limited for the next two or three months. The longer, the more costs must be incurred. Yesterday the pandemic spread first, then we could move to another,” added Maria.

Efforts to break the chain of distribution, according to TM Zakir Machmud PhD, cannot only be from the government alone. It takes public awareness to be successful.

Regarding inter-island trade, according to him, is not a new issue. It has been discussed before, but must be reorganized. "One of the industrial policies, is developing upstream industries to be supplied to downstream industries. The downstream industry is highly dependent on imported raw materials. When the country is lockdown, goods that can be produced domestically become limited. "

A lecturer at Bina Nusantara University, Agung Sudjatmoko, said that the current condition was a momentum to rebuild Indonesia's economy based on domestic strength. "With the inter-island trade system, there is an even distribution of potential between regions," he said.

Professor of the Faculty of Economics and Business at the Universitas Malikussaleh, Prof. A Hadi Arifin, mentioned many brilliant ideas that developed in the Management of Talks During the Covid-19 Pandemic held by the Universitas Malikussaleh of Management Study Program. "The ideas that appear in this national-scale webinar should be able to be implemented in economic policy," said Hadi. [Ayi Jufridar]

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