JAKARTA – Micro, Small, and Medium Enterprises (MSMEs) play a central role in the Indonesian economy. With a total of around 66 million business units or 99 percent of the total business units in Indonesia, this sector is the main driving force of the national economy. In addition, MSMEs also contribute greatly to job creation by absorbing around 97 percent of the workforce throughout Indonesia.
The government under the leadership of President Prabowo Subianto has made strengthening MSMEs one of the main pillars in implementing its economic policy known as Prabowonomics. This policy focuses on economic development based on food sovereignty, energy, and increasing the competitiveness of the national industry. Ambitious targets have been set, namely economic growth of 8 percent and the elimination of absolute poverty.
The strategic steps taken by the government include developing an export MSME ecosystem. Minister of Trade Budi Santoso emphasized the importance of forming a solid ecosystem, including capital, market access, product development, and the existence of aggregators to promote MSME products to the global market.
“Export centers will also play a very important role for exporters to find a wider market,” said Budi.
This commitment is strengthened through the implementation of export training programs. Throughout the end of 2024, the Ministry of Trade targets to train 600 MSMEs and create 100 new exporters. In addition, the government has prepared an export activity calendar that includes promotion and exploration of trade agreements (business matching) to increase MSME product transactions in the international market.
At the domestic level, the Ministry of Finance through a dialogue with the Yogyakarta Special Region Chamber of Commerce and Industry (KADIN) accommodated the aspirations of MSME actors. Deputy Minister of Finance Anggito Abimanyu conveyed the importance of collaboration between the government and the business world to strengthen the competitiveness of MSMEs in local and global markets.
“The MSME sector plays a major role as a pillar of the national economy. Through this dialogue, we hope to generate fresh ideas to encourage the escalation of MSME businesses in various regions,” said Anggito.
Despite their significant contribution, MSMEs still face various challenges. Therefore, the government continues to improve assistance and training, as well as encourage the formation of policies that support the sustainability of this sector.
With various planned efforts, the government is optimistic that MSMEs will be increasingly solid as the backbone of the national economy, while also being able to compete in the global arena. [*]
