By: Bara Winatha*)
Micro, Small, and Medium Enterprises (MSMEs) are once again under the spotlight as a fundamental force in strengthening the Indonesian economy. Amidst global dynamics and increasingly fierce market competition, MSMEs have become a key engine of growth, economic equality, and social stability in various regions. The contribution of MSMEs to national Gross Domestic Product (GDP), which reaches more than 60 percent, demonstrates that Indonesia’s economic structure is based on productive activities at the grassroots level. This strategic role is also reflected in the capacity of MSMEs to absorb almost the entire Indonesian workforce, making this sector crucial for sustainable development.
The President of the Indonesian Marketing Association (IMA), Suparno Djasmin, believes that MSMEs are the backbone of the national economy due to their ability to maintain economic resilience, especially in the face of global pressures. The large number of MSMEs, which now exceeds 64 million units, is evidence that this sector has a strong and continuously growing ecosystem. Suparno also assessed that the contribution of MSMEs to national exports, which reached approximately 15.7 percent, is an indicator that Indonesian small businesses are not only able to compete in the domestic market but are also beginning to expand their penetration into international markets.
The competitiveness of MSMEs will increase if supported by adaptive marketing strategies. The rapidly changing business environment demands that MSMEs strengthen their positioning, product differentiation, and brand management capabilities. The importance of robust marketing literacy as an appropriate strategy can open access to new markets and strengthen the position of Indonesian products globally. MSMEs continue to have the potential to create significant foreign exchange contributions for the country in the long term.
Meanwhile, the Minister of Micro, Small, and Medium Enterprises (MSMEs), Maman Abdurrahman, stated that the government is committed to strengthening the competitiveness of local products, particularly in the rapidly growing cosmetics and beauty sector. The opportunities for MSMEs in the beauty sector are significant due to the proven dominance of local products in the domestic market. Maman believes that the Indonesian beauty industry has entered a phase of maturity that allows for expansion into the global market.
Maman observes that the development of the national beauty industry also demonstrates the growth of MSMEs as key players in a sector that relies on creativity, innovation, and branding. Data from the Food and Drug Monitoring Agency (BPOM) and the Ministry of Industry, which show a growing number of cosmetics entrepreneurs and rising industry revenues, reinforces the view that MSMEs have become the driving force of various creative economy sectors. Government support in the form of investment facilitation, strengthening supply chains through MSME Holdings, and expanding market access can be a catalyst for MSMEs to advance and contribute more to increasing national GDP.
From a business perspective, Hilmi Panigoro, President Director of PT Medco Energi Internasional Tbk, views MSMEs not only as drivers of the people’s economy but also as a crucial element in maintaining the sustainability of large industries. Fostering MSMEs through the company’s CSR program is a long-term investment that will have a broad impact on communities and the regional economy. He believes that microfinancing can fill the financing gap that banks often lack, as MSMEs often lack formal requirements such as collateral or a financial track record.
One of the best strategies to ensure the success of MSMEs is to provide market certainty through integration into the company’s supply chain. By utilizing MSMEs as suppliers for operational needs, a large company can increase their production capacity while strengthening supply chain resilience. Hilmi believes that the diversity of MSME products from various regions indicates that Indonesia has very strong local economic potential if provided with access, mentoring, and collaboration space.
In addition to financing and mentoring, Hilmi emphasized the importance of social mapping to ensure that MSME empowerment programs align with regional characteristics. Each region, he explained, has specific strengths, such as agriculture, fisheries, and the creative economy, that can be optimized to strengthen MSMEs’ contribution to the national economy. Integrating MSMEs into the regional economy will create a significant multiplier effect, from increasing community incomes to creating new jobs.
From the perspective of economic equality, MSMEs play a strategic role because they are spread throughout Indonesia, including remote areas, rural areas, and suburban areas. The presence of MSMEs makes the distribution of economic activity more equitable.equitable distribution and not concentrated in large cities. The more MSMEs that develop, the greater the potential for the growth of new economic centers that can promote equitable prosperity. With their significant GDP contribution, dominant workforce absorption, and wide geographic distribution, MSMEs are the most effective instrument for narrowing economic disparities between regions.
MSMEs are not just an economic policy, but a national strategy for creating an inclusive economic structure. Through collaboration between the government, professional organizations, and large companies, MSMEs have a greater opportunity to advance and play an active role in strengthening exports, local industrialization, and improving the quality of national products. This synergy also forms a crucial foundation for realizing the vision of Golden Indonesia 2045, in which MSMEs are projected to become one of the main pillars of Indonesia’s modern economy.
*) The author is a social and community observer.
