"Not only creating business opportunities, such industries also play a role in establishing a dynamic and productive business ecosystem," he added.
Kartasasmita said his argument is based on the fact that the number of IKMs in Indonesia has been rising steadily every year, with 4.4 million business entities registered as of 2024. They account for 99.7 percent of the total business entities in the domestic manufacturing industry.
The minister then underlined that IKMs absorb as many as 12.39 million workers, accounting for 66.25 percent of the total people employed in the industry sector. Moreover, such industries contributed 21.44 percent to the total output value of the manufacturing industry in 2023.
Bearing that in mind, he expressed optimism that the continued development and empowerment of IKMs would further boost the contribution of the manufacturing industry to the national economy
Earlier, on Tuesday, the minister cited data released by the World Bank showing that Indonesia's manufacturing added value (MVA) touched US$255 billion last year, placing the country in the 12th rank globally.
According to him, the value reflected an increase of US$68 billion, or 36.4 percent, compared to 2022.
He underlined that Indonesia's MVA is far higher compared to that of Thailand (US$128 billion) and Vietnam (US$102 billion).
"There is only one key to maintaining this positive trend, namely consistently strengthening the competitiveness of our manufacturing industry," he said.
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Translator: Ahmad M, Tegar Nurfitra
Editor: Azis Kurmala
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