MSMEs contributing 61.7% to GDP: BKPM

MSMEs contributing 61.7% to GDP: BKPM

Illustration - A worker lends finishing touches to footwear at a home-based industry in Pamulang, South Tangerang, Banten on October 19, 2020. (ANTARA FOTO/Muhammad Iqbal/pras)

MSMEs have (played a) great role and contributed to increase the national economy by 61.7 percent of the national GDP. Nearly 37.7 percent of MSMEs are engaged in micro businesses.
Makassar, S Sulawesi (ANTARA) - Micro, small, and medium enterprises (MSMEs) are playing an important role in national economic recovery, contributing 61.7 percent to the gross domestic product (GDP), chief of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, said.

Nearly 120 million of the country's 133 million workers, either formal or informal, are employed with MSMEs, he said at an online seminar on the synergy of investment policy and MSME empowerment in national economic recovery, here on Tuesday.

He added that 98.7 percent, or 64.2 million, of the total business units in the country are run by MSMEs.

“MSMEs have (played a) great role and contributed to increase the national economy by 61.7 percent of the national GDP. Nearly 37.7 percent of MSMEs are engaged in micro businesses,” Lahadalia informed.

He said the COVID-19 pandemic has had a tremendous impact on economic life in the nation, among other things.

The Indonesian economy contracted 5.32 percent in the second quarter of 2020. Foreign direct investment (FDI) in the country is projected to fall 30-40 percent. The pandemic has affected 7 million Indonesian workers. They comprise workers who have been laid off or proceeded on unpaid leave.

BRI insurance director M Fankar Umran, SE MBA, said MSMEs have several characteristics, including individual ownership, assets of less than Rp50 million, and a business turnover of less than Rp300 million.  

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