By: Hana Widya Saraswati
President Joko Widodo has demonstrated a strong commitment to promoting the growth of Micro, Small, and Medium Enterprises (MSMEs) as an essential part of Indonesia’s economy.
Since taking office in 2014, President Jokowi has focused on developing this sector to strengthen the people’s economy. With the number of MSMEs reaching 65.1 million units and their contribution of 61 percent to the Gross Domestic Product (GDP), as well as absorbing 97 percent of the workforce, this sector clearly plays a central role in the economic structure of Indonesia.
The steps taken by the leader of the nation, born in the city of Surakarta, continue to strive to create an ecosystem that supports the growth of micro, small, and medium enterprises (MSMEs), whether through financial inclusion policies, digitalization, or financing support.
From the beginning, President Jokowi understood that MSMEs must be empowered as a pillar of the national economy. Through various strategic policies, the government continues to strive to ensure that MSME actors have better access to the financial sector.
The Head of State emphasized the importance of financial inclusion as a foundation for creating a sustainable economy. This not only enhances the participation of MSMEs in the national economy but also helps strengthen economic resilience against various global challenges.
In addition to financial inclusion policies, President Jokowi is also promoting the digitalization of MSMEs as a step to enhance their competitiveness in the modern era. The Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the government is very committed to supporting MSMEs to level up through various digitalization programs.
With the application of digital technology, MSMEs can access a broader market, enhance operational efficiency, and take advantage of various opportunities in the digital economy era.
This digital transformation has proven to strengthen the MSME sector, including in facing various pressures, even during the COVID-19 pandemic some time ago, where digitalization became key in maintaining the operations of many small businesses.
In addition to digitalization, the government is also continuing to strengthen financial support for MSMEs. In recent years, President Jokowi has directed various policies to facilitate access to financing for MSME actors.
One form of tangible support is the People’s Business Credit (KUR) program, which provides loans at low interest rates. This program has helped many small and medium enterprises (SMEs) to grow and develop, as well as expand their operational scale. Through this policy, President Jokowi ensures that SMEs have adequate access to capital to expand their businesses and increase productivity.
Not only in terms of financing and digitalization, the government also pays special attention to the development of cooperatives as a driving force for the people’s economy. The Chairman of the Expert Team of the National Task Force for the National Movement for Mental Revolution (GNRM), Prof. Ravik Karsidi, emphasized the importance of building an economic system based on Pancasila through the development of cooperatives and small and medium enterprises (SMEs).
Cooperatives and MSMEs are not only drivers of the economy but also create a fairer and more equitable economic system. In this regard, the government continues to strive to encourage public participation in economic activities through cooperatives, which are expected to strengthen the national economic structure.
President Joko Widodo’s steps are also reflected in the synergy between various ministries and agencies. The government, through various relevant ministries, actively supports the development of MSMEs by providing training, assistance, and various incentives.
The Ministry of Cooperatives and Small and Medium Enterprises, for example, has launched programs to enhance the capacity of SMEs, both in terms of management, marketing, and product innovation. This collaboration ensures that SMEs receive comprehensive support in running their businesses.
The policies implemented by the leader born in 1961 not only impact the domestic economy but also strengthen the position of MSMEs in the global market. By enhancing competitiveness through digitalization and financial support, Indonesian MSMEs are now better prepared to compete in the international market.
The government is also providing broader access for MSME products to penetrate export markets, thereby creating new opportunities for the growth of this sector. This effort is part of President Jokowi’s long-term strategy to promote MSMEs as the backbone of the national economy with global competitiveness.
The government also appreciates the role of banking in supporting the growth of MSMEs, particularly in terms of inclusive financing. State-owned banks, such as Bank Rakyat Indonesia (BRI), have become strategic partners in advancing MSMEs through various microfinance programs.
The step demonstrates a strong synergy between the government and the private sector in driving the people’s economy. Sustainable banking support, especially through financial inclusion, has become one of the key factors in ensuring that MSMEs continue to grow and contribute to national economic growth.
President Jokowi’s policy legacy in promoting the growth of MSMEs is a tangible effort to create a more inclusive and sustainable economy. By prioritizing that sector, the first President of Indonesia who did not come from the political or military elite has opened up greater opportunities for the public to actively engage in the economy. These steps not only strengthen the current economy but also lay a solid foundation for Indonesia’s future.
With various policies that have been implemented, President Jokowi has successfully built an ecosystem that supports the growth of MSMEs throughout Indonesia. This success demonstrates that a people’s economy can be a strong pillar in creating equitable prosperity for all the people of Indonesia.
Sustained support for MSMEs is key to maintaining stable and sustainable national economic growth. A decade of President Jokowi’s leadership has proven that MSMEs are not only an important economic sector but also one of the main pillars in achieving equitable prosperity.
Through inclusive policies focused on the growth of micro, small, and medium enterprises (MSMEs), President Jokowi has made a significant contribution to driving the people’s economy. This initiative not only provides direct benefits to MSME actors but also creates a broader positive impact on the national economy. With the foundation that has been built, Indonesian SMEs will continue to grow and become the main driving force in the future economic development.
*) Researchers in People’s Economy – Institute of Prosperous Economics