Jakarta – The micro, small, and medium enterprise (MSME) sector is one of the drivers of economic growth in Indonesia. Women often play a role as MSME owners and workers in this sector.
Recognizing this potential, the government is striving to facilitate access to capital for women-owned MSMEs by strengthening partnerships with other countries, including Canada. Canadian Ambassador to Indonesia Jess Dutton stated that Canada is ready to provide support and share expertise related to MSMEs with women in Indonesia.
“So, we are trying to support women in Indonesia in various fields,” he said.
Meanwhile, Canada’s Secretary of State for International Development, Randeep Sarai, revealed that the Canadian government is investing 22 million Canadian dollars (approximately Rp 266.4 billion) in Indonesia for five new initiatives, primarily targeting strengthening women-led MSMEs. This partnership aims to provide technical assistance and attract investment for businesses that empower women, particularly MSMEs, which are considered vital to Indonesia’s sustainable development.
“I am pleased to announce more than 22 million Canadian dollars for five new projects that will help strengthen the economic partnership between Canada and Indonesia,” Sarai said.
One of the priority sectors in the development of women’s MSMEs is the processed food sector, ensuring they are better prepared to penetrate export markets and become more resilient to the impacts of climate change. These projects also focus on supporting trade promotion, increasing climate resilience through women’s and youth organizations, and protecting maternal and infant health.
Of the total funding allocation, two main projects will be implemented in collaboration with TFO Canada and Catalyste+, specifically targeting increasing the capacity, competitiveness, and export readiness of women-owned MSMEs.
The first project, Climate Resilient Agri-Food Trade Promotion Support (CRAFTS), with a total funding of 5 million Canadian dollars (approximately Rp60.5 billion) over a six-year period, supports Indonesian MSMEs in the processed food sector by strengthening trade support services and expanding access to climate-resilient agricultural technologies.
Second, the Economic Linkages for Enhanced Value, Trade and Exports (ELEVaTE), funded by 5 million Canadian dollars (Rp60.5 billion) over six years, supports approximately 400 Indonesian MSMEs to be better prepared to compete in the export market through capacity building and strengthening trade networks.
According to Sarai, all these initiatives are in line with Indonesia’s priorities of MSME development and trade diversification, while also supporting the implementation of the Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA).
“We look forward to this game-changing agreement coming into effect this year,” Sarai concluded.