Strategic Government Steps to Strengthen MSMEs for Inclusive Economic EquityBy Ivana Marvelia, Economic Observer
President Prabowo Subianto’s administration is currently preparing a new direction for national economic development, focusing on equitable welfare for the people. One of the main policies being developed is the implementation of a “constitutional economy”, an idea presented by Coordinating Minister for Community Empowerment, Abdul Muhaimin Iskandar.
This concept is intended as a new foundation for a fair national economic system that prioritizes the interests of small-scale actors, particularly Micro, Small, and Medium Enterprises (MSMEs), as the main drivers of Indonesia’s economy.
During the closing of the 2025 National Musabaqah Qiraatil Kutub (MQKN) in Jakarta, Muhaimin explained that the constitutional economy is a policy based on the mandate of Article 33 of the 1945 Constitution, which emphasizes that the economy must be organized as a joint effort based on family principles. This principle rejects the domination of free-market practices and stresses collaboration in managing economic resources.
The policy is designed as a response to the liberal system, which over the past 15 years has been perceived as causing inequality. Through the constitutional economy approach, the state’s role is expected to return to actively protecting marginalized communities from market competition. The primary goal of this policy is not only economic growth but also equitable welfare distribution and social protection for all layers of society.
Muhaimin emphasized that the role of the state and government needs to be restored so that the most vulnerable people do not continue to suffer from market competition. This commitment demonstrates the government’s effort to strengthen the state’s function as a protector, rather than just an observer of global market dynamics. Through a more inclusive system, the constitutional economy is expected to be a key driver of a resilient, people-centered economy with social justice.
In addition to explaining the national economic policy direction, Muhaimin highlighted the strategic role of pesantren (Islamic boarding schools). Pesantren have been recognized for their significant contribution to strengthening democracy, education, and poverty alleviation. As long-established social institutions, pesantren play a critical role not only in religious education but also in empowering local communities economically.
Muhaimin noted that pesantren have fulfilled two main functions in poverty alleviation: education and empowerment. Through these functions, communities can be educated to become capable individuals able to improve their living standards. Pesantren have proven to be spaces of social and economic transformation in various regions.
Thus, the role of pesantren in people’s economy is increasingly recognized as an integral part of national development. If the synergy between constitutional economic policies and social institutions like pesantren is strengthened, future economic development will be more rooted in social justice, mutual cooperation, and national self-reliance.
Concrete efforts to strengthen the MSME sector have also been carried out through the national banking sector. PT Bank Negara Indonesia (Persero) Tbk has expanded access to productive financing for small and medium enterprises. As of September 2025, credit growth in the medium segment increased by 14.3% YoY, while non-KUR MSME credit grew by 13.9% YoY, reaching IDR 46.3 trillion.
BNI’s Commercial Banking Director, Muhammad Iqbal, stated that the bank continues to be positioned as a strategic government partner in strengthening the real sector through productive and inclusive financing support. As a state-owned bank, BNI contributes to national economic growth by channeling productive credit to MSMEs.
Financing is directed to priority sectors such as labor-intensive industries, housing finance, Koperasi Desa Merah Putih (KDMP), and the Free Nutritious Meal Program (MBG). These measures aim to ensure economic equity down to the village level and enhance grassroots community welfare.
Additionally, MSMEs are facilitated to “level up” through programs such as BNI Xpora and Diaspora Loan, which aim to expand export markets and strengthen global competitiveness. Since 2024, a more accurate credit scoring system has been implemented to ensure targeted financing, while Tactical Account Planning (TAP) is applied to optimize sustainable customer profitability.
Support for MSME strengthening is also provided by the Financial Services Authority (OJK) through financial literacy initiatives in various regions. During the Kick-Off of Financial Literacy Month in Banten Province 2025, activities themed “Healthy Finance, Competitive and Sustainable MSMEs” were organized by OJK Banten in cooperation with the Cilegon City Government.
Cilegon’s Regional Secretary, Maman Mauludin, appreciated the initiative as a strategic step to enhance community financial literacy, particularly for MSME actors. He emphasized that healthy financial management is a key foundation for business sustainability. Financial literacy is not only about numeracy but also includes risk management, financial planning, and the ability to access financial products and services wisely.
The Head of OJK Banten Province, Adi Dharma, explained that this activity was the result of cooperation with Cilegon City Government. This synergy is part of efforts to expand financial education to the public, especially to support MSME competitiveness and self-reliance.
Through these strategies, Indonesia is being guided toward an inclusive, self-reliant, and equitable economy, with the strengthening of MSMEs as a primary instrument to achieve social welfare for all Indonesians.
The author is an Economic Observer
