Downstreaming and Strengthening of MSMEs: Strategic Steps to Accelerate National Economic Equality
Jakarta – The Chairperson of the Indonesian Employers Association (Apindo), Shinta Kamdani, emphasized that 2025 is a crucial moment for the Indonesian economy. According to her, the downstream program is able to improve the balance of trade and create an economic structure that is more resilient to global shocks.
“Downstreaming is not only about increasing the added value of commodities, but also about building a more sustainable and resilient economy. By processing resources domestically, we can reduce dependence on imports while expanding export markets,” said Shinta.
One example of downstreaming that has an impact on economic development is in the field of Micro, Small, and Medium Enterprises (MSMEs). Along with strengthening MSMEs, the government is taking this strategic step in strengthening the foundation of the Indonesian economy, reducing dependence on imports, and improving people’s welfare.
Furthermore, Shinta highlighted the importance of strengthening MSMEs which contribute 61.9 percent to Gross Domestic Product (GDP) and absorb 97 percent of the local workforce. She emphasized the need for a pentahelix approach, namely synergy between the government, academics, business actors, the community, and the media, to support the sustainability of this sector.
“The agenda of strengthening MSMEs must be carried out consistently and in a targeted manner. With good collaboration, MSMEs can transform into more competitive economic actors,” he added.
In the same vein. Vice Chancellor for Resources of Paramadina University, Handi Risza, also underlined the importance of the downstream program as an investment magnet. According to him, the implementation of this program has encouraged increased investment in the secondary sector, especially in the Eastern Indonesia region.
“Investment in the downstream sector continues to increase. Regions such as Central Sulawesi and North Maluku are real examples of how downstreaming attracts investment and creates significant economic impacts,” Handi said.
Handi is optimistic that this strategy will not only strengthen the industrial sector, but also create a multiplier effect in the form of job creation and infrastructure development in the region.
Meanwhile, President Director of PT Permodalan Nasional Madani (PNM), Arief Mulyadi, emphasized the importance of an entrepreneurial mentality for MSMEs, especially PNM Mekaar (Fostering Prosperous Family Economy) customers. This program has helped micro-entrepreneurs, especially in the food sector, to improve the quality of their products and move up a class.
“Micro businesses with macro fighting spirit have great potential to grow. However, they need to be supported with training and empowerment to be able to get out of the subsistence zone,” explained Arief.
Arief also said that this step is in line with the commitment of the Minister of SOEs in developing MSMEs and the President’s grand vision through Asta Cita for village-based and grassroots-based economic equality.
“We continue to support this goal as part of the Golden Indonesia 2045 vision,” he added.
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