Indonesia Doubles Down on MSMEs to Fuel Economic Growth
Central Lombok, West Nusa Tenggara – The Indonesian government is reinforcing its commitment to micro, small, and medium enterprises (MSMEs) as the cornerstone of the nation’s economy, aiming to drive job creation and bolster public welfare. speaking at the Festival on Ease and Protection of MSMEs in central Lombok on Tuesday, Deputy Minister for MSMEs Helvi Moraza lauded MSME entrepreneurs as “noble humanitarians” for simultaneously tackling poverty and unemployment.
According to the latest National Labor Force Survey (Sakernas) data from December 31, 2024, Indonesia boasts 56.14 million MSMEs. A important 96.84 percent – totaling 54.42 million units – are classified as micro businesses, generating annual sales up to Rp2 billion (approximately US$122,000).
MSMEs currently contribute a ample 60.51 percent to Indonesia’s gross domestic product (GDP) and employ 97 percent of the national workforce. “Ninety-nine percent of MSME entrepreneurs absorb 97 percent of the labor force and contribute more than 60 percent to GDP.MSMEs have proven to be a solid foundation for Indonesia’s economy,” Moraza stated.
To further empower these businesses, the government is implementing MSME Job Fairs nationwide, providing support with business licensing, certification, and other growth-facilitating measures. the recent Lombok fair focused on legalization and certification for 1,000 micro entrepreneurs.
Government initiatives also include the 8+4+5 economic stimulus package, designed to boost job creation and economic growth with a strong emphasis on MSMEs. accelerated distribution of People’s Business Credit (KUR) is also underway, targeting 2.3 million MSMEs.
Coordinating Minister for Community Empowerment Muhaimin Iskandar stressed the importance of swift KUR disbursement, estimating that lending to the targeted 2.3 million MSMEs coudl create approximately 4 million jobs. “I urge banks involved in the MSME KUR scheme to ensure the effective implementation of the 8+4+5 policy package,” Iskandar said.
The government expresses optimism that continued support for MSMEs will be pivotal in generating employment, reducing poverty, and strengthening the overall resilience of the Indonesian economy.
(Source: ANTARA News - Copyright © 2025)
