“Strengthening production technology is a strategic step to help local products compete and play a bigger role,” he said here on Wednesday.
According to the Ministry’s Single Data Information System, over half of Indonesia’s 30 million MSMEs—around 16 million—still rely on manual or semi-manual equipment.
The government is now accelerating efforts to modernize production and expand digital marketing.
To support this shift, the government launched a Rp20 trillion (US$1.19 billion) Labor-Intensive Investment Credit scheme in 2025.
The initiative aims to help MSMEs adopt modern machinery while creating jobs.
Additional support comes through the Help Me Grow program, which provides equipment and production tools in partnership with financial institutions, state-owned enterprises, and large companies.
Moraza noted that 25 million MSMEs are already connected to e-commerce platforms. The government’s next goal is not just to grow the number of MSMEs, but to improve product quality and business competitiveness.
Head of the National Research and Innovation Agency (BRIN), Laksana Tri Handoko, stressed the role of applied research in helping MSMEs reach new markets.
He cited technologies like extraction machinery that convert raw commodities into powder or liquid, improving logistics and product value.
During the PRABU Expo 2025 in Jakarta, the Ministry of MSMEs signed a memorandum of understanding with Bank Indonesia and BRIN to strengthen collaboration in financing, research, and innovation for MSME development.
Translator: Shofi Ayudiana, Raka Adji
Editor: Aditya Eko Sigit Wicaksono
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