In UB Malang, LaNyalla Talks about the Paradox of MSME Sector in Indonesia

21 October 2022 oleh admin

MALANG, dpd.go.id - The chairman of the DPD RI, AA LaNyalla Mahmud Mattalitti, said that the constitutional changes made in the 1999 to 2002 period contributed to the paradox of the MSME sector (Micro, Small and Medium Enterprises).

According to LaNyalla, after the amendment, Article 33 of the Constitution was added to 5 paragraphs, from the previous 3 paragraphs and the explanation text was completely deleted. It made the Indonesian economic system turned into a capitalistic liberal economic system.

"The economic mechanism is left to the market mechanism. So that it enriches the individual owners of capital, including foreign capital," he said, in a Public Lecture on Nationality and Entrepreneurship Insights, at Brawijaya University (UB) Malang, Friday (21/19/2022).

In fact, there should be a joint business process between the three pillars of the Indonesian economy, namely cooperatives or people's businesses, state and private companies, both national and foreign.

In the MSME sector, LaNyalla said the government must continue to encourage more MSMEs or SMEs to be born, through various assistance and training schemes. However, the stimulus was not accompanied by the presence of the government in ensuring the existence of an existing market or the exact number of guarantees for market availability.

"MSME actors continue to be told to produce. Prospective MSME actors are given training to dare to enter as entrepreneurs. However, there is absolutely no real data on how many markets can absorb their products," he said.

As a result, according to economic law, if there is too much supply, while there is no demand, what happens is a drop in prices, or business actors go out of business. Therefore, it is not an increase in the number of entrepreneurs that occurs, but an increase in the number of poor people.

"This is a serious problem in our government. Because the orientation of the numbers calculated is how many business permits have been issued and how many MSMEs have been established. Unfortunately, we do not have concrete data on how many MSMEs have gone out of business within a certain period of time. specific information that explains why it went out of business," he said.

Meanwhile, the development of the digital economy through the Marketplace Platform in Indonesia is also the same. According to him, Indonesia is dominated by imported goods from China. Even though the value of marketplace transactions in Indonesia in 2020 reached Rp. 266 trillion.

"This means that the majority of the Rp 266 trillion we spend on imported products, because the children of this nation are only sellers in the marketplace. They only get a small profit from sales. The main added value lies with the producers in the country of origin of the goods," he explained.

This becomes a paradox when the desire to improve the people's economic foundation from the MSME sector is not followed by maximum effort in realizing it.

These paradoxes made LaNyalla offer the idea of returning to Pancasila. Back to the economic concept in Article 33 of the original text of the 1945 Constitution and its explanation before the Constitutional Amendments were made.

"Indonesia should be sovereign, independent, independent and Indonesia can become a superior country with proper management of natural resources," said LaNyalla, who is also an alumni of Universitas Brawijaya Malang.

He explained that a country with a comparative advantage like Indonesia is very appropriate if the Constitution ordered that this country control the earth and water and the wealth contained therein. As well as managing production branches that are important for the livelihood of many people.

"The national interest of a country, especially in the economic context is above everything else. Therefore, in the norms of international law, state sovereignty, including in the economic context, can be exercised freely according to the interests of the country, as long as it does not violate the sovereignty of other countries," he stressed.

In the event, the Chairman of the DPD RI was present with the Chairman of the East Java Province Chamber of Commerce and Industry, Adik Dwi Putranto. Meanwhile, the Rector of UB Malang is represented by the Vice Chancellor for Cooperation and Internationalization, Prof. Dr. Ir. Muhammad Sasmito Djati, other Vice Chancellors, Deans, Lecturers and students of UB Malang. (*)