Investment and Sustainability Incentives for Msmes

Abstract

The government continues to make efforts to increase the role of Micro, Small and Medium Enterprises after Covid 19 as the national economy recovers. A number of economic policies that focus on improving the MSME sector are intended to ensure that this sector grows and develops again in the future. In the national economy, MSMEs continue to make a major contribution to economic development, job creation, equal distribution of people's income, and providing products and services for the community. On the other hand, MSMEs are a source of state revenue to finance development. In the midst of unstable economic conditions, efforts to increase Gross Domestic Product originating from this sector continue to be made. MSMEs are expected to grow again in the long term and become a source of sustainable financial potential. The government, through fiscal policy, provides wider space for MSMEs, the roots of which become economic society, which absorbs the workforce. Through fiscal policy, the government can provide investment incentives to MSMEs. This fiscal policy is aimed at providing relief in fulfilling tax obligations and encouraging MSME activities to grow and develop again after Covid 19, which has had a negative impact on MSMEs. Through incentives, MSMEs have more freedom to increase production. Investment incentives are also intended to increase the capacity of MSMEs to fulfill tax obligations.