The first concerns encouraging the younger generation to become productive and competitive entrepreneurs, the minister said.
This is crucial considering that the population within this category has reached 64 percent of the total population of Indonesia, based on Statistics Indonesia (BPS) data for 2020, he noted.
"Meanwhile, 73 percent of Indonesian youngsters have expressed an interest in entrepreneurship," he said.
The second method relates to increasing the potential of the digital economy, as seen in 2021, when the transaction value of e-commerce reached Rp395 trillion, he added.
He said he believes that the transaction value in the sector will increase by up to US$140 billion by 2025.
Throughout the COVID-19 pandemic, MSME transactions increased by 26 percent, or 3.1 million transactions per day, and shipping rose 35 percent, he added.
This was supported by the involvement of 21 million new digital consumers since the start of the pandemic, he said.
"What is unique is that 72 percent of them did not come from metropolitan cities. This is very positive for the penetration growth in the digital market," Masduki noted.
The increase in the smallholder business credit (KUR) ceiling to Rp373.17 trillion in 2022, with the provision of interest subsidy worth 3 percent for six months, has also presented another opportunity for MSME transformation, he said.
For cluster-based KUR and small KUR without ceiling accumulation restrictions, the SMEs banking credit ratio will be increased to 30 percent in 2024, he informed.
Lastly, Indonesia can utilize its involvement in various international forums to develop MSMEs, Masduki said.
The forums include the G20 Presidency, the Mandalika MotoGP, Global Platform for Disaster Risk Reduction (GPDRR), the APEC Summit, and the ASEAN Summit, he added.
Specifically, within the G20 Sherpa Track, the development of MSMEs in Indonesia can be made one of the main issues, he said.
"We should utilize this as best as we can to encourage the globalization of MSMEs, their broader market access, and broader partnership," the minister remarked.
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Translator: M Baqir Alatas, Fadhli Ruhman
Editor: Suharto
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