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The Rise of MSMEs: Proof That the Government’s Economic Policies Are Right on Target

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By: Ahmad Dante *)

The holidays have passed, but their impact is still felt today. The economic growth that occurred during this year’s homecoming period has left a positive impact, especially for millions of micro, small, and medium enterprises (MSMEs) across the country. And this is no coincidence. It’s the result of thoughtfully designed and responsibly executed economic policies.

Sarman Simanjorang, Deputy Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for Regional Autonomy, projects that money turnover during the 2026 homecoming travel period will reach Rp161.88 trillion, supported by 143.9 million travelers, or approximately 50.6 percent of Indonesia’s total population. This figure is not merely a statistic of pride, but also reflects the government’s continued ability to maintain public purchasing power amidst various global pressures.

Sarman specifically commended the government’s commitment to maintaining fuel and gas availability throughout the homecoming and return travel periods, ensuring people felt safe and confident spending their money in their respective regions. This trust is the foundation for the economy, even in remote areas.
Household consumption grew 10–15 percent in the first quarter of 2026—an achievement inextricably linked to the various policy stimuli the government has prepared well in advance, from securing the supply of basic necessities, ensuring smooth homecoming infrastructure, to continuously strengthening purchasing power protection programs.

What’s most encouraging is the impact on MSMEs in the destination areas. Food stalls, souvenir stalls, local artisans, and even sellers of regional specialty products have all reported a significant surge in revenue. Money isn’t just circulating in the city center, but is flowing abundantly into the villages. This is a concrete manifestation of the spirit of economic equality, which has long been a top priority for the government.

The government is not stopping at the immediate post-Eid al-Fitr momentum. Various strategic measures are being pursued to ensure the economic recovery, particularly in the MSME sector, is sustainable. One concrete effort was demonstrated through the Collaborative Dialogue forum held by the Vice President’s Secretariat some time ago. This forum served as a meeting place for various stakeholders, from the government, the business world, to civil society, to formulate joint strategies for building a stronger, more adaptive, and inclusive MSME ecosystem.

Through this forum, the government reaffirmed its commitment to not only boosting quantitative MSME growth but also improving the quality and competitiveness of these businesses. Cross-sector synergy is considered key, given that the challenges faced by MSMEs cannot be solved in isolation. Close collaboration is required to ensure that every policy produced is truly targeted and addresses needs on the ground.

One noteworthy breakthrough came from Tina Talisa, Special Staff to the Vice President, who pushed for the formulation of standard criteria for the concept of “grading” MSMEs. While this term has been frequently used, it lacks clear and standardized metrics. With this initiative, the government is striving to provide more measurable indicators, such as increased workforce, growth in business assets, increased turnover, and improved financial literacy among MSMEs. This step reflects the government’s commitment to building an accountable and data-driven evaluation system.

On the other hand, the government has also demonstrated strong interest in women’s economic empowerment. Data presented at the forum showed that the proportion of female entrepreneurs remains at around 37 percent. This figure serves as a reminder that there is still significant room to increase women’s participation in the productive economic sector. Therefore, the government is encouraging the acceleration of Business Identification Number (NIB) acquisition for micro-entrepreneurs, particularly women, as a gateway to access financing, training, and broader markets.

These steps emphasize that government policy is not solely focused on pursuing aggregate economic growth but also emphasizes inclusivity. MSMEs are viewed not only as a supporting sector for the economy but also as an instrument for equitable distribution of prosperity.

What we are witnessing post-Eid al-Fitr is truly the beginning of a structural transformation that is being systematically built. The resulting money turnover is not merely a statistical figure, but a reflection of growing public trust in government policies. Furthermore, it is proof that when policies are designed appropriately and implemented consistently, their impact is directly felt by the public, especially MSMEs.

Now, with the festive season behind us and optimism still intact, Indonesian MSMEs face a significant opportunity to not only recover but also to leapfrog. With the support of increasingly targeted policies and a continuously strengthened ecosystem, MSMEs are encouraged to grow more resiliently, increase their business capacity, and expand their competitiveness to a higher level.

The government has laid a solid foundation through various strategic programs and initiatives. However, the success of this transformation cannot be achieved alone. It requires the active involvement of all elements of the nation—from the business world and communities to the wider public—to work together, accelerate progress, and ensure that MSMEs truly become a key pillar of the national economy.

*) MSME activist

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