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Indonesia Continues to Empower Small Medium Enterprises

August 16, 2022, 04.25 PM

JAKARTA, – Indonesia’s President Joko “Jokowi” Widodo stressed the importance of empowering micro small medium enterprises (MSMEs) to a new height amid a growing digital economy.

“MSMEs must be supported continuously so that they can immediately reach a new height. We continue to encourage the development of a digital economy which has produced two decacorns and nine unicorns to help empower MSMEs,” said Jokowi on Tuesday, Aug. 16 at an annual state of the nation speech a day before Indonesia celebrates 77 years of independence.

Jokowi went on to say that as of today 19 million MSMEs have entered the digital ecosystem. The number is expected to increase to 30 million MSMEs by 2024.

Also readIndonesian SMEs That Resisted Digital Adoption Collapsed during Pandemic

Besides, the President also said various programs have been implemented to help MSMEs. This includes the provision of fund assistance for MSMEs and promoting MSME products in the government e-catalogs.

“At the same time, the government also allocates funds from the state budget, regional budgets, and state-owned enterprises to buy domestic products. This will absorb the MSME products,” he added.

Programs to boost MSMEs

Previously, Minister of Cooperatives and SMEs Teten Masduki said that the ministry will remain focused to carry out programs, which will boost the MSMEs.

“President Joko Widodo has asked me as a minister to redesign the MSME development policy, changing our economic structure which has been dominated by the micro sector for decades,” said Teten.

Also readIndonesian SMEs Record 14pct Growth in Exports

Several programs included the Transformation of Micro Enterprises or locally known as transfumi from informal to formal.

“To achieve the target, the government and local governments facilitate the issuance of Business Identification Numbers [NIB] to reach 1.2 million NIBs nationwide. Partnerships with regional associations are also carried out to accelerate the target,” said Teten.

The government also provided several certifications and opportunities to the MSMEs to participate in some international events.

(Writer: Elsa Catriana | Editor : Aprillia Ika)


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