MSMEs will benefit from entering the global value chain, says SME minister
TEMPO.CO, Jakarta – Micro, Small and Medium Enterprises (MSME) will benefit from entering the global value chain, according to Minister of Cooperatives and Small and Medium Enterprises (SMEs), Teten Masduki.
This was based on the findings of the OECD Task Force study on SME entrepreneurship, he said at the 4th G20 side event “Stakeholder Consultation: Opportunities for SMEs in the Supply Chain of global value and the logistics solution” observed virtually, Friday.
The G20 is an international forum of 19 countries and the European Union working together to address big issues. Indonesia holds the presidency of the grouping this year.
Masduki expects the stakeholder consultation forum can help MSMEs identify competitive advantage in the global value chain.
It also helps MSMEs understand that this identification is extremely beneficial to optimize their participation in the global value chain, he explained.
The minister also expects the forum to be able to provide recommendations that can be followed multilaterally, bilaterally or regionally in the form of trade policies.
These trade policies should facilitate the entry of MSEs into the global value chain and provide solutions to the logistics demand of MSEs.
In addition, he urged G20 member countries to cooperate in reviving the global economy.
The impact of the COVID-19 pandemic and Russia’s invasion of Ukraine has exacerbated stagnant global economic growth, he said.
It was also estimated that the weak economic growth and rising inflation will occur for longer periods than the previous projection.
Economic cooperation among G20 countries to revive the global economy is seen as crucial although the reaction of most countries amid the economic turmoil is to protect their respective economies, he said.
According to Masduki, G20 countries cannot forget that the global economy depends heavily on them.
Indeed, the group produces approximately 80% of world production, constitutes two-thirds of the world’s population and represents three-quarters of world trade.
“Recover together, recover stronger” is not only a theme that should be discussed together, but also a formula for global recovery and faster collective growth, he noted.
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