By Lailani Yunzi )*
The development of MSMEs in various regions is increasingly demonstrating their strategic role in promoting equitable distribution of the national economy. In a dynamic, ever-evolving economy, MSMEs are a crucial pillar in maintaining local economic resilience while providing jobs for the community. Various initiatives from local governments, banks, and local communities are working together to ensure MSMEs have greater room to grow. This collaborative effort demonstrates that equitable development can only be achieved if small and medium enterprises are supported through a strong, inclusive, and sustainable ecosystem.
One strong commitment is evident in the actions of regional banks. Bank Jatim, for example, continues to strengthen the transformation of digital products and services. Bank Jatim President Director Winardi Legowo emphasized that his company is striving to introduce innovations to make banking services more relevant to current needs, particularly in facilitating access to financing and digital payment systems for MSMEs. He also stated that Bank Jatim’s support goes beyond providing financing, but also opens market access through strategic partnerships with various local and international institutions. Winardi believes these partnerships will help MSMEs expand their market base and increase the competitiveness of local products. Going forward, he said, Bank Jatim will continue to strengthen collaboration with local governments and the business community to create a resilient MSME ecosystem.
Meanwhile, in Kutai Kartanegara, efforts to develop MSMEs have become crucial amidst the shifting economic structure post-mining. In a discussion themed “strengthening MSMEs in a just energy transition,” the Kukar Community and Village Empowerment Agency (DPMD) played an active role in formulating alternative economic strategies capable of maintaining the sustainability of villages impacted by mining. Ahmad Irji’i, the Community Empowerment Activist for the Kukar DPMD, stated that this forum is a crucial space to map the challenges and opportunities for MSMEs in a region heavily dependent on mining. He believes that East Kalimantan is in a crucial transition phase, as the coal industry begins to decline and communities require new, more stable economic sources.
Irji’i also emphasized that regions dependent on mining are the groups most exposed to the social risks of the shift to renewable energy. Therefore, he believes that alternative economies such as MSMEs must be thoroughly prepared to ensure communities do not lose their livelihoods. During the forum, he described the participants’ shared enthusiasm for exploring local potential, from agricultural processing to creative entrepreneurship, as a new economic model that can survive beyond the shadow of the extractive industry. However, he cautioned that various challenges remain, ranging from limited capital, difficulty accessing markets, to uneven managerial skills among MSMEs. Given these conditions, Irji’i believes cross-sector collaboration is key to ensuring a fair transition process that does not leave small businesses behind.
Irji’i also expressed his hope that the resulting recommendations would be quickly translated into a roadmap for strengthening MSMEs in post-mining areas. He emphasized that the spirit of change must begin in villages, as they are the starting point for national economic resilience. For him, strengthening village MSMEs means strengthening the foundation of the regional economy towards a greener and more sustainable future.
In Papua, the role of MSMEs has also received serious attention from the regional government and Bank Papua. In a meeting between Papua Governor Mathius Fakhiri and Bank Papua officials, the government emphasized the importance of regional banks supporting small businesses. Bank Papua Operations Director Isak S. Wopari conveyed that the governor’s directive was very clear: that Bank Papua strengthen its support for MSMEs as the driving force of the people’s economy. He explained that Bank Papua’s coaching and mentoring program has reached approximately one thousand MSMEs in Jayapura, Abepura, and several other areas. Isak observed that the coaching provided has been able to increase the capacity of MSMEs, both in terms of management, access to capital, and understanding of the local market.
Isak also added that coordination between the provincial government and Bank Papua will be further strengthened, given that operational control of Bank Papua remains under the authority of the governor, as the majority shareholder. This step is expected to create more targeted and aligned policies to strengthen MSMEs throughout Papua, particularly in addressing the challenges of economic equality and regional development.
Looking at initiatives from East Java, East Kalimantan, and Papua, it’s clear that developing MSMEs in the regions is not just an effort to increase local incomes, but also a national strategy to achieve economic equality. When local governments, banks, academics, local communities, and small business owners work in unison, MSMEs become the driving force of transformation toward a more inclusive, resilient, and equitable economy. Strengthening MSMEs means strengthening the foundation of the national economy, because equitable prosperity can only be achieved if all regions are given equal opportunities to develop.
)* The author is an Economic Observer
