By: Jefri Muskaro
Micro, Small, and Medium Enterprises (MSMEs) are an important foundation for the Indonesian economy. The contribution of MSMEs in absorbing labor and supporting Gross Domestic Product (GDP) has made them the backbone of the people’s economy. Under the leadership of President Prabowo Subianto, the government has announced various programs and policies that focus on empowering MSMEs to promote community welfare and encourage sustainable economic growth. These programs are designed with a clear vision to increase MSME competitiveness, facilitate access to financing, and accelerate innovation.
The first prominent step is the separation of the Ministry of Cooperatives and SMEs into two independent ministries. This is done so that the focus of attention and management of SMEs is more focused and optimal. The Minister of SMEs 2024-2029, Maman Abdurrahman, explained that this separation is a strategic step to support the increasingly rapid growth of the SME sector. With the existence of an independent Ministry of SMEs, Maman is optimistic that the number of SMEs that “move up a class” will increase significantly. Through this ministry, the government is committed to providing special attention to increasing the capacity of SMEs comprehensively.
Furthermore, President Prabowo also plans to write off debts for around 6 million MSMEs, farmers, and fishermen who are burdened by old loans. This step was conveyed by the President’s Special Envoy, Hashim Djojohadikusumo, who said that many small business actors, farmers, and fishermen are still burdened with old debts from decades ago, some even from the 1998 crisis. With this debt cancellation policy, it is hoped that the financial burden of MSMEs and the agricultural sector can be reduced, so that they can focus more on developing their businesses without being haunted by debt pressure. This policy is considered very important by various parties, including Sunarso, President Director of Bank Rakyat Indonesia (BRI), who said that this policy has been long awaited and must be implemented with strict criteria to ensure that assistance is on target and avoid misuse of loans.
On the other hand, strengthening MSMEs will also be pursued through training and capacity building programs. The training designed by the government under Prabowo’s leadership covers various important aspects such as business management, marketing, technology, and product innovation. Esther Sri Astuti, Executive Director of the Institute for Development of Economics and Finance (INDEF), stated that the training provided to MSMEs can create opportunities for small business actors to become part of the industrial supply chain. According to Esther, Indonesia can follow the example of countries such as South Korea, China, and Japan that have successfully integrated MSMEs into the production chains of large companies. MSMEs that are empowered with knowledge of international standards, such as ISO 9002, will be able to meet the needs of large industries, thereby increasing their competitiveness in both local and international markets.
Access to financing is one of the biggest challenges faced by MSMEs in Indonesia. In the era of President Prabowo, the government is committed to providing certainty of capital through micro-credit schemes, interest subsidies, and simplification of the licensing process. This is expected to help small business actors access the capital they need to expand their production scale and strengthen competitiveness. The government is also collaborating with various parties to increase financial inclusion for MSMEs, especially in reaching business actors in remote areas who have had difficulty accessing banking services.
In addition to financing, marketing is also the focus of the MSME program in the Prabowo era. In an increasingly digital world, marketing through e-commerce platforms and social media is key to expanding the reach of MSME products to a wider market. Collaboration between MSMEs and large companies is also an important agenda for the government. Siti Mukaromah, a member of Commission VII of the Indonesian House of Representatives, expressed optimism that the synergy between the Ministry of MSMEs, the Ministry of Industry, and the private sector will help MSMEs grow faster and transform into small and medium industries. She emphasized that this synergy must be supported by regulations that favor MSMEs as well as commitment from the executive and legislative branches in creating a conducive business ecosystem.
Pro-MSME policies in the Prabowo era also include regulations that support the sustainability of MSMEs. The government plans to reduce bureaucracy and provide tax incentives for MSMEs. In addition, eliminating administrative barriers and increasing access to business information are part of the government’s strategy to create a more friendly business environment for MSMEs. This policy is expected to provide convenience for MSMEs to develop, while also providing protection for local products from unfair competition.
Overall, the MSME strengthening program under President Prabowo covers various aspects that are crucial for the sustainability of this sector, from financing, marketing, training, to innovation. With concrete steps and a strong commitment from the government, Indonesian MSMEs are expected to become the main pillar in realizing the vision of a sustainable national economy. The various programs prepared by the government bring great hope to MSME actors throughout Indonesia. *The author is an Economic Observer