By: Feronika Jasin)*
Micro, Small, and Medium Enterprises (MSMEs) have a very important role in the Indonesian economy. This sector not only contributes greatly to Gross Domestic Product (GDP), but also becomes the main supporter of employment in various regions. Therefore, strengthening MSMEs is very necessary to maintain national economic growth to remain solid and sustainable.
MSMEs in Indonesia are spread across various sectors, from trade, manufacturing, to the creative sector. The existence of MSMEs not only functions as a driver of the local economy, but also creates many job opportunities, both for people in urban areas and in remote areas. In an often uncertain economic situation, this sector can be a stable economic buffer, especially in facing global and domestic economic crises.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the government continues to maintain people’s purchasing power through a number of economic stimulus packages aimed at low-income households, the middle class, and the business world. The government is trying to strengthen cooperatives through technology adoption, human resource development, and improving governance to increase competitiveness in the national economic ecosystem.
MSMEs and cooperatives, two sectors that are often referred to as the backbone of the Indonesian economy, are now faced with an urgent need to transform. Cooperatives, as economic organizations based on solidarity and mutual cooperation, have great potential to play a role in national economic recovery. However, to achieve this goal, cooperatives and MSMEs must be able to adopt faster and more sustainable changes, especially in terms of technology, management, and human resource development.
Strengthening MSMEs can be done through several strategic steps. One of them is by improving access to financing. Many MSMEs have difficulty obtaining credit from formal financial institutions due to lack of collateral or lack of understanding of financial management. Therefore, micro-financing programs and more flexible credit schemes can be a solution to increase MSME liquidity.
Bank Indonesia Governor Perry Warjiyo said that monetary and macroprudential policy measures in facing future economic challenges reflect a cautious yet progressive approach to boosting Indonesia’s economic growth. Amid global uncertainty and evolving domestic economic dynamics, interest rate cuts and loose macroprudential policies are important instruments in maintaining economic stability and supporting an inclusive recovery.
The recent policy rate cuts are aimed at stimulating economic growth by lowering borrowing costs for businesses and households. This policy, when combined with appropriate macroprudential policies, can encourage credit expansion, which in turn supports job creation, especially in priority sectors such as MSMEs and the green economy.
In addition, it is also important to improve the quality of human resources (HR) in the MSME sector. Training and education related to managerial skills, digital marketing, and effective financial management can help MSME players to be more competitive. Mastery of digital technology can also expand the MSME market, which was previously limited to the local market, can now reach the international market.
The statement by the Chairperson of the Indonesian Employers Association (Apindo), Shinta Kamdani, regarding the government’s strategic agenda to boost Indonesia’s economic growth is very inspiring and reflects a deep understanding of the dynamics of the global and domestic economy. Welcoming 2025, as a crucial period for the Indonesian economy, Shinta highlighted several main pillars that will determine the direction of future economic growth, namely downstreaming, digital economy, green industry, food self-sufficiency, and strengthening MSMEs.
In terms of the digital economy, Shinta Kamdani emphasized that this sector has become the main key in building a more modern and inclusive economy. Indonesia with the largest number of internet users in Southeast Asia has great potential to develop the digital economy sector, ranging from e-commerce, fintech, to technology start-ups. Digital transformation allows business actors throughout the country to access wider markets, increase efficiency, and create more innovative business models.
Product innovation and diversification are also things that need to be considered in order to strengthen the position of MSMEs. MSMEs that are able to innovate and adjust products to dynamic market needs will be easier to survive in the long term. In addition, government support in the form of policies that support MSMEs, such as tax incentives and entrepreneurship training, are also important factors in creating a conducive ecosystem for MSME growth.
Ultimately, strengthening MSMEs will have a direct impact on national economic growth. By increasing the competitiveness of MSMEs, this sector can make a greater contribution to GDP, create more jobs, and reduce economic inequality in various regions. Therefore, strengthening MSMEs is not only the responsibility of the government, but also a shared task of all elements of society to ensure that the Indonesian economy remains solid and sustainable in the future.
)*The author is an economic analyst at PT Astara Indo
