Appreciation of Government Efforts to Encourage MSMEs as Drivers of the National Economy

By: Dirandra Falguni )*

Micro, Small, and Medium Enterprises (MSMEs) have long been the backbone of the Indonesian economy. With a contribution of 61% of Gross Domestic Product (GDP) and absorbing around 117 million workers, MSMEs have a very significant role in supporting national economic growth.

The government, together with various parties, continues to encourage the sustainability and competitiveness of this sector through various policies and strategic initiatives.

Member of the Indonesian House of Representatives Commission XIII PAN Faction, Arisal Aziz, showed his concern for complaints from MSME actors regarding the decline in sales due to competition with e-commerce platforms that massively sell imported products.

During his visit to the Ministry of Trade (Kemendag), Arisal highlighted the many local shops that had gone bankrupt, including in well-known shopping centers such as Tanah Abang and Thamrin City.

Arisal asked the Ministry of Trade to prioritize local products and limit the circulation of cheap imported goods, especially from China. Minister of Trade, Budi Santoso, took this complaint seriously and promised to supervise and impose sanctions on e-commerce platforms that violate regulations. This step is expected to protect MSMEs from the threat of cheap imported products that often enter through illegal channels.

In addition, the Ministry of Trade also emphasized the importance of promoting local products and strengthening import regulations as strategic efforts to maintain the sustainability of the MSME sector. The government is committed to ensuring that digital platforms support local products, so that MSMEs can continue to grow amidst tight competition.

PT Bank Rakyat Indonesia (Persero) Tbk also plays an important role in supporting the growth of MSMEs. In addition to providing access to financing, BRI focuses on empowerment through training, mentoring, and other strategic programs.

BRI President Director, Sunarso, explained that the empowerment approach must be a priority before financing. BRI helps MSMEs become strategic partners, not just recipients of assistance.

With education, MSME actors can improve their management, access markets and technology, and implement good business governance to grow more sustainably.

This step is in line with the government’s Asta Cita, which includes the creation of quality jobs and inclusive economic empowerment. With this support, MSMEs are expected to be able to face global challenges and contribute to the vision of Indonesia Emas 2045.

Meanwhile, the East Kalimantan Provincial Government (Kaltim) has launched a new initiative to make MSMEs the driving force of the local economy. One strategy is to make hotels in East Kalimantan a showcase for superior MSME products. The Acting Governor of East Kalimantan, Akmal Malik, emphasized the importance of synergy between the hotel sector and MSMEs.

A hotel is not just a place to stay, but a strategic space to introduce local products to tourists and visitors from outside the region. This step is believed to be able to expand the market for local products while increasing the competitiveness of MSMEs at the national and international levels.

Akmal also emphasized that the local government must be a catalyst in facing MSME challenges. Hotels that refuse to collaborate with local MSMEs are threatened with no longer being an option for official government activities. This firm step shows the commitment of the East Kalimantan Provincial Government to make local products the hosts in their own regions.

Data from the Indonesian Chamber of Commerce and Industry (KADIN) shows that MSMEs contribute greatly to the Indonesian economy. In 2023, the number of MSMEs will reach 66 million, contributing IDR 9,580 trillion to GDP. This sector also absorbs 97% of the total national workforce.

However, MSMEs also face various challenges, such as competition with cheap imported products and difficulty in accessing the global market.

Collaboration between the government, private sector, and the community is very important to create an ecosystem that supports the growth of MSMEs. With the right support, MSMEs can become a major force in building an inclusive and sustainable economy.

The government is also expected to continue to supervise trade through digital platforms and ensure that it supports local products. In addition, synergy with financial institutions such as BRI and innovation at the regional level, such as that carried out by the East Kalimantan Provincial Government, can be a model for other regions to support MSMEs.

With these various strategic steps, MSMEs will not only survive, but also develop into a major force in realizing Indonesia’s vision as a developed country by 2045.