Jakarta The government continues to strengthen its commitment to strengthening the Micro, Small, and Medium Enterprises (MSMEs) sector as an effort to create economic equality throughout the country. This commitment is demonstrated by various strategic policies that support MSME growth, one of which is through increasing the ease of obtaining business legality and access to financing.
The Director General of General Legal Administration (Dirjen AHU) at the Ministry of Law and Human Rights, Widodo, conveyed strategic directions to facilitate the acquisition of business legality for MSMEs throughout Indonesia.
“MSMEs are the backbone of the Indonesian economy. It is through them that our economic stability is maintained, and it is through them that national economic defense is strengthened,” said Widodo.
The Ministry of Law, together with the Ministry of Investment/BKPM, recorded a continued increase in the number of MSMEs, from 64.6 million units in 2021 to 66 million units in 2025. The MSME sector also contributes significantly to national GDP, accounting for 61.9 percent, and employs more than 119 million workers.
“This fact demonstrates that MSMEs are not only a pillar, but also a driver of national prosperity,” Widodo emphasized.
As part of the policy to strengthen the MSME sector, the government also introduced the Sole Proprietorship scheme, which allows businesses to establish legal entities with simpler, faster, and more affordable procedures.
Since its launch in October 2021, 291,417 Sole Proprietorships have been registered. However, Widodo noted 8,760 dissolutions, highlighting the significant challenges businesses still face, particularly in access to financing.
To address this, the government launched an incubation program in 10 major cities in 2024 to improve business actors’ understanding of governance and the use of legal entities. The government also allocated IDR 200 trillion to Himbara banks to strengthen liquidity and expand credit distribution in the productive sector.
“When banks have strong liquidity, they will be more aggressive in disbursing credit, including People’s Business Credit (KUR) and working capital loans for small and medium enterprises,” explained Widodo.
Furthermore, the Financial Services Authority (OJK) emphasized the importance of the financial services sector in supporting economic growth and empowering MSMEs. The Chairman of the OJK Board of Commissioners, Mahendra Siregar, urged all financial services industry players to strengthen their commitment and increase resilience by providing inclusive services to the public. The OJK also launched POJK 19/2025, which regulates the obligations of banks and the non-bank financial industry to increase financing for MSMEs.
“We invite all financial services industry players to increase resilience, strengthen their commitment, and provide inclusive, sustainable, and community-oriented services. Together, we will not only survive, but also lead change,” said Mahendra.
The private sector also supports the government’s efforts to strengthen MSMEs. Hilmi Panigoro, President Director of PT Medco Energi Internasional Tbk, stated at the 2025 MedcoEnergi MSME Corner Festival, that MSME development is not only the government’s responsibility, but also the private sector’s.
“At Medco, we set aside a portion of our funds to ensure MSMEs are developed and grow,” said Hilmi. Through microfinancing and empowerment programs within the company’s supply chain, Medco is committed to strengthening MSMEs to make them more competitive and develop.
The government is committed to continuously encouraging MSMEs not only to survive but also to thrive, becoming drivers of national economic growth and reaching global markets.