This makes MSMEs the backbone of the Indonesian economy.
“MSMEs make a major contribution to our national economy,” deputy for micro enterprises at the ministry, Riza Damanik, said at the opening of the 2025 Cooperatives and MSMEs Festival (KUKM Fest) here on Tuesday.
According to data from Statistics Indonesia (BPS), MSMEs account for 61.9 percent of the country’s gross domestic product (GDP).
“These enterprises also absorb more than 119 million workers, or about 97 percent of Indonesia’s total workforce,” Damanik pointed out.
However, despite their scale and contribution, he noted that MSMEs continue to face significant challenges, namely low productivity, limited access to financing, inadequate digitalization, and poor market networks.
In response, the ministry has outlined several initiatives, such as expanding their access to affordable and inclusive financing through the government’s People’s Business Credit (KUR) program.
The program targets 2.34 million borrowers and aims to distribute Rp300 trillion (approximately US$18.4 billion) in financing to MSMEs this year.
Efforts are also underway to strengthen human resources and improve productivity through business incubation programs, competency-based training, product standardization, and assistance with halal certification and distribution permits.
To help small businesses access both domestic and export markets, the ministry, together with various stakeholders, is promoting the development of MSME business clusters in regions across Indonesia, including Bangka Belitung.
“Still, all of those efforts will not succeed without strong collaboration between the central government, regional governments, financial institutions, universities, business associations, and the broader MSME community,” Damanik emphasized.
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Reporter: Aprionis, Uyu Liman
Editor: Azis Kurmala
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