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The Indonesian Government Expands Partnership with Canada to Strengthen MSME Employment

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Jakarta – The Indonesian government continues to encourage job expansion by strengthening Micro, Small, and Medium Enterprises (MSMEs), particularly those led by women, as part of its inclusive and sustainable economic development strategy.

These efforts are supported through international cooperation with the Government of Canada, which has allocated funding of more than 22 million Canadian dollars or approximately Rp266.4 billion for five MSME strengthening initiatives in Indonesia.

The funding is aimed at increasing the capacity of MSMEs in the processed food sector to be more productive, competitive, and able to absorb labor, while simultaneously expanding access to export markets.

Canada’s Junior Minister for International Development Randeep Sarai expressed his support during his visit to Jakarta.

“I am pleased to announce more than 22 million Canadian dollars for five new projects that will help strengthen the economic partnership between Canada and Indonesia,” said Randeep Sarai.

The Indonesian government views this collaboration as part of strengthening the MSME ecosystem, including providing access to financing, increasing business capacity, and utilizing sustainability-oriented technology. This strengthening is expected to enable MSMEs to expand their business scale and open up new job opportunities, particularly for women.

Of the total funding allocated, two main projects are focused directly on improving the capacity and competitiveness of MSMEs. The Climate Resilient Agri-Food Trade Promotion Support (CRAFTS) project received CAD 5 million (approximately IDR 60.5 billion) for a six-year period. This program supports MSMEs in the processed food sector by strengthening trade support services and implementing agricultural technologies that adapt to climate change.

Meanwhile, the Economic Linkages for Enhanced Value, Trade, and Exports (ELEVaTE) project, run in partnership with Catalyste+, also received Canadian $5 million in funding over six years. This program targets approximately 400 Indonesian MSMEs to better prepare them for export markets by increasing their business capacity and strengthening international trade networks, ultimately boosting production and employment.

In addition to strengthening domestic MSMEs, the Indonesian government is also encouraging the utilization of overseas job opportunities through structured employment partnerships. The Canadian government is opening up opportunities for Indonesian citizens in various sectors, from healthcare to technology.

“We have a wide range of opportunities, from doctors in the healthcare sector and technology workers to workers in the economic and care sectors, including senior care. There’s always a need to be met,” said Randeep.

This step reflects the Indonesian Government’s ongoing efforts to expand employment opportunities, both through strengthening national MSMEs and utilizing global job opportunities in a safe and measurable manner.

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