"Of course, the role of MSMEs in the agriculture and fishery sectors is very important in realizing national food self-sufficiency," MSMEs Deputy Minister Helvi Yuna Moraza remarked during a coordination meeting on food here on Friday.
Moraza highlighted that Indonesia currently has more than 29 million MSMEs in the agriculture sector, which serve as the main force in tackling food security challenges in the future.
Of the total number of agriculture MSMEs, 99 percent are individual businesses, 0.02 percent are legal entities, and 0.04 percent are other types of businesses.
"This figure shows that this sector is the backbone of national food security," he remarked.
However, the deputy minister pointed out that the food sector continues to face major challenges, such as the low financial inclusion index among farmers and fishers, which is currently at 62.26 percent.
Moreover, farmer regeneration is a crucial issue, considering that 64.2 percent of workers in the agriculture sector are above 45 years of age.
To tackle the challenges, the government continues to bolster inclusive financing policies for MSMEs, especially those in the food sector.
Moraza noted that in 2024, the government had disbursed Rp282 trillion (around USD17.19 billion) financing under the low-interest-rate People's Business Credit (KUR), higher than in 2023, namely at Rp260 trillion (around USD15.85 billion).
The government is also boosting the business cluster-based KUR and KUR for agricultural tools and machinery as strategic steps to boost productivity in the agriculture sector.
"These programs are aimed at boosting real economic growth, increasing the added value of local products, and reducing dependence on the trade sector," he remarked.
Related news: Daily MSME transaction value at Merauke reaches Rp82 mln
Related news: Minister underscores importance of access to electricity for MSMEs
Translator: Muhammad Harianto, Raka Adji
Editor: Rahmad Nasution
Copyright © ANTARA 2025
