Lombok Tengah (ANTARA) - The Indonesian government has reaffirmed its commitment to making micro, small, and medium enterprises (MSMEs) the backbone of the national economy.

Deputy Minister for MSMEs Helvi Moraza said the government is striving to create wider job opportunities through the development of MSMEs to drive economic growth and improve public welfare.

"MSME entrepreneurs are noble humanitarians because they are fulfilling two crucial missions at once — alleviating poverty and creating jobs," he said at the Festival on Ease and Protection of MSMEs in Central Lombok, West Nusa Tenggara, on Tuesday.

According to the National Labor Force Survey (Sakernas), as of December 31, 2024, the number of MSMEs stood at 56.14 million units. The majority, 96.84 percent or 54.42 million units, are micro businesses with annual sales of up to Rp2 billion (around US$122,000).

MSMEs play a vital role in the national economy, contributing 60.51 percent to the country's gross domestic product (GDP) and employing 97 percent of the workforce.

"Ninety-nine percent of MSME entrepreneurs absorb 97 percent of the labor force and contribute more than 60 percent to GDP. MSMEs have proven to be a solid foundation for Indonesia's economy," Moraza noted.

To strengthen this role, the government is rolling out MSME Job Fairs across the country. The program is designed to support the MSME ecosystem by facilitating business licensing, certification, and other measures to help small enterprises grow.

In Lombok, the fair involved 1,000 micro entrepreneurs, focusing on helping businesses with legalization and certification.

"We encourage all stakeholders to continue strengthening collaboration and synergy to build a more inclusive economy," Moraza added.

The government has also introduced the 8+4+5 policy package — an economic stimulus plan to boost job creation and support economic growth, with a strong focus on MSMEs.

Additional support is provided through the acceleration of People's Business Credit (KUR) distribution, targeted at 2.3 million MSMEs.

Coordinating Minister for Community Empowerment Muhaimin Iskandar emphasized that faster KUR disbursement is crucial to maximizing job absorption. He estimated that lending to 2.3 million MSMEs could generate around 4 million jobs.

"I urge banks involved in the MSME KUR scheme to ensure the effective implementation of the 8+4+5 policy package," Iskandar said.

Through these measures, the government is optimistic that MSMEs will continue to play a pivotal role in creating new jobs, reducing poverty, and strengthening the resilience of Indonesia's economy.

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