After the demotion of taxes, SMEs should be more and more numerous

Bisnis.com, JAKARTA – The Ministry of Cooperatives and SMEs is hoping that the new rules relating to the reduction of the income tax (SME) from 1% to 0 , 5% will encourage SMEs to go to clbad Meliadi Sembiring said the potential financing of tax cuts should be managed by MSMEs to increase its commercial capacity.

"We are waiting to what the rating increases, the tax savings imposed for business development, increase investments or capital "he said.

He estimates the drop in tax rates is a good start. If the future of the Indonesian economy can increase and the condition is better, there is a possibility to minimize.In addition, there is also the possibility of grouping businesses from one side to the other. Other

"It can be reduced to a minimum or as special that co-operatives can be liberated, favoring small ones, to reduce economic disparities. " The President of the International Council for Small Business (ICSB), Indonesian Samsul Hadi, said he appreciated the move from the government to the final tax-cutting rule of the MSMEs. He said the figure of 0.5% is still big and should be lowered again.

"It will weaken the capital if the loss, if the profit is not felt, simply lowers the amount by for example 0.1%," he said. Super micro and micro businesses are expected to be tax exempt because they are not ready as taxpayers or they do not pay taxes. Currently, the regulation applies to all MSMEs

"Newly released people must already be able to pay taxes, which remains to be done," he said.

According to him, at the micro and lower level get education first in order to realize the importance of the tax. However, to be able to pay taxes, his business must also improve his business performance.

"Until the government is present and willing to pay taxes," he said.

In connection with the draft law on entrepreneurship, the ICSB also encourages the government to act quickly and to immediately adopt rules on derivatives

"I hope that the government can get there soon, "said Samsul. . He said the ratio of entrepreneurship is also important to boost economic growth. Currently, the level of entrepreneurship in Indonesia shows an increase from 1.67% to 3.1%.

"The trend is quite significant: on the regulatory side, the government is trying to make the certainty," he said.

In addition, he said, Indonesia has a potential with a poduktif-filled age-demographic bonus that is seen as an increase in the number of entrepreneurs, which, if developed from the start, will be good, "he explained.

In quantity, currently 62.92 million business units or 99.99% of total business units in Indonesia are SMEs with a general contribution to GDP of 60% of GDP. total national GDP as well as labor absorption potential reached 116.3 million people or 97.02% of the total labor force employed.

"If 62 million, this can increase 5% [tahun ini] but without activity to accelerate the development of the normal course can be left out with the global.That we do not want, so that the regulatory effort is made, human resources are improved, "he explained.