Government Strengthens MSMEs: The Backbone of the National Economy Toward an Advanced Indonesia
Jakarta – The government continues to demonstrate its commitment to fostering the growth of Micro, Small, and Medium Enterprises (MSMEs) as a key driver of the national economy.
Various policies and programs have been launched to strengthen this sector, considering that MSMEs contribute more than 60% to Indonesia’s Gross Domestic Product (GDP) and absorb approximately 97% of the national workforce.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized that the government has taken strategic steps to ensure the continuous growth of MSMEs.
“The role of MSMEs as the backbone of Indonesia’s economy is highly significant. The government is committed to continuously supporting MSMEs to scale up and enhance their competitiveness on the international stage. Various incentives have been prepared to facilitate MSMEs’ access to financing, digitalization, and exports,” said Airlangga.
In addition, Drs. Tri Karyadi Riyanto Raharjo, S.H., M.Si., Head of the Department of Industry, Cooperatives, and MSMEs of Yogyakarta City, highlighted the importance of a mindset shift among MSME entrepreneurs.
“MSMEs must aim for high performance. President Prabowo has emphasized that as we move toward Indonesia Emas 2045, MSMEs will be one of the key sectors driving economic growth. MSME training programs continue to be intensified to enhance managerial skills and product innovation among entrepreneurs,” he stated.
The government is also expanding financing access through low-interest credit schemes and providing various subsidies to ease the financial burden on business owners. Additionally, digital transformation is being accelerated through technology assistance and integration with national and international e-commerce platforms. Various exhibitions and international business forums will be organized to expand MSMEs’ access to global markets, making local products increasingly competitive.
Through these concrete efforts, the government ensures that MSMEs not only survive but also grow sustainably. The government remains optimistic that through synergy between entrepreneurs, the government, and the private sector, MSMEs can evolve into a key pillar in realizing an inclusive and sustainable economy, ultimately leading Indonesia toward a stronger and more independent economic era.
