By: Samsul Arifin
The Prabowo-Gibran administration has launched various programs to enhance the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. In its first 100 days, the government has implemented policies such as the elimination of MSME debt and is targeting the eradication of extreme poverty within the first two years. Additionally, the government is focusing on strengthening economic equality and supporting MSMEs through programs like business credit for agriculture, fisheries, and millennial startups. With these innovations and policies, the government aims to improve MSME competitiveness and foster sustainable economic growth.
Moreover, a concrete step taken by the government is the involvement of MSMEs in the Free Nutritional Meal Program (MBG). Coordinating Minister for Community Empowerment, Muhaimin Iskandar, emphasized that the government will continue to monitor and ensure MSME participation in the program. He explained that it is currently in the early stages, with budget increases planned until the end of the year. Coordination with the National Nutrition Agency and local governments is critical to ensuring the program’s success and maximizing benefits for MSMEs across regions.
The government is also strengthening inter-agency synergies to enhance MSME competitiveness, one example being the collaboration between Customs and various stakeholders. Customs in Ternate, for instance, conducted a working visit to the Bank Indonesia representative in North Maluku Province to align visions for MSME development. During this meeting, it was agreed that sustainable cooperation would be pursued, including data exchange and more structured development programs. This effort aims to provide MSMEs with broader opportunities to develop their markets and improve product quality.
A similar approach is being taken by Customs in Tanjung Balai Karimun, which is collaborating with Bank Syariah Indonesia to assist agricultural cooperatives in Karimun Regency. This program is part of the government’s strategic efforts to strengthen community-based MSMEs and improve their productivity. With guidance from various parties, MSMEs are expected to have easier access to financial facilities and the mentorship needed to expand in both domestic and international markets.
The government is also demonstrating its commitment to increasing MSME exports through various programs that provide opportunities to expand into global markets. The Ministry of Trade recorded potential transactions amounting to USD 5.22 million in January 2025 from business matching sessions for MSMEs. These sessions were held through trade representatives overseas, including business presentations and direct meetings with buyers. The “UMKM Berani Inovasi, Siap Adaptasi (BISA) Ekspor” (MSMEs Brave Innovation, Ready to Adapt) program is one of the key initiatives to promote the export of Indonesia’s leading products.
Fajarini Puntodewi, Director-General of National Export Development at the Ministry of Trade, noted that transactions worth USD 1.55 million came from Singapore, particularly for a variety of spices. Additionally, a Memorandum of Understanding (MoU) worth USD 3.67 million was signed with various parties, including South Korea, contributing USD 1 million in sectors like wood products, medical equipment, processed foods, and electric vehicles. In January 2025, the Ministry of Trade held 72 business matching sessions in 33 countries, involving 196 MSME players from various sectors, including food and beverages, furniture, and health products.
This success is also due to the active role of MSME mentors who guide and recommend the businesses they support. The Ministry of Trade plans to further strengthen collaborations with various parties to maximize export potential. In February 2025, 75 additional business matching activities will be held, focusing on furniture, agriculture, fisheries, and Muslim fashion products. There is high optimism regarding this initiative, given the strong interest from buyers in Indonesian products.
Amid global challenges, the Ministry of Trade remains committed to ensuring that every opportunity is realized into actual transactions. Through synergy, collaboration, and innovation, the government continues to support MSMEs in breaking into the export market. In 2024, Indonesia’s non-oil and gas exports reached USD 248.83 billion, with significant growth in the agriculture and industrial sectors. Leading products such as cocoa, iron and steel, aluminum, and coffee saw increased demand, demonstrating stronger competitiveness in international markets.
In addition to export efforts, the government is also focusing on improving the competitiveness of MSME products domestically. Through various training and mentoring programs, business owners are encouraged to improve product quality and leverage digital technology for marketing. Digital platforms for marketing MSME products are being expanded, creating new opportunities for businesses to reach a broader consumer base. With this strategy, MSMEs are not only targeting local markets but are also being prepared to compete on the international stage.
These measures not only benefit MSME owners but also positively impact the national economy. With increased exports and the growth of the MSME sector, positive effects are felt across various levels of society, creating new jobs and improving economic well-being. The government’s commitment to supporting MSMEs continues to be strengthened, making them an integral part of Indonesia’s strategy for building a more advanced and competitive economy.
*) Economic Analyst from Pancasila Madani Institute
