Prabowo-Gibran Government Increases MSME Competitiveness with Various Innovations
By: Samsul Arifin
The Prabowo-Gibran government has launched various programs to increase the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Within the first 100 days, the government has adopted a policy of eliminating MSME debt and targeting the elimination of extreme poverty in the first two years. In addition, the government is also focusing on strengthening economic equality and strengthening MSMEs, including through business credit programs for the agriculture, fisheries, and millennial startup sectors. With these various innovations and policies, the government hopes to increase the competitiveness of MSMEs and encourage sustainable economic growth.
In addition, a concrete step that has also been taken is the involvement of MSMEs in the Free Nutritious Meals (MBG) program. The Coordinating Minister for Community Empowerment, Muhaimin Iskandar, emphasized that the government will continue to monitor and ensure the involvement of MSMEs in the program. He explained that it is currently still in the early stages, with additional budgets that will continue until the end of the year. In this effort, coordination with the National Nutrition Agency and local governments is an important factor to ensure that this program runs optimally and provides benefits for MSMEs in various regions.
The government is also strengthening synergy between institutions to improve the competitiveness of MSMEs, one of which is through collaboration between Customs and Excise with various stakeholders. Ternate Customs, for example, conducted a working visit to the representative of Bank Indonesia in North Maluku Province with the aim of aligning the vision in fostering MSMEs. In the meeting, it was agreed that ongoing cooperation would be carried out, including in the form of data exchange and more structured coaching programs. This effort aims to provide broader facilities for MSMEs in developing markets and improving the quality of their products.
Similar steps were also taken by Tanjung Balai Karimun Customs in collaboration with Bank Syariah Indonesia to provide assistance to farmer cooperatives in Karimun Regency. This program is part of the government’s strategic efforts to strengthen the community-based MSME sector and increase their productivity. With assistance from various parties, MSMEs are expected to be able to more easily access financial facilities and get the guidance they need to develop in domestic and international markets.
The government has also shown its seriousness in increasing exports of MSME products through various programs that provide opportunities for expanding global market access. The Ministry of Trade recorded a potential transaction of USD 5.22 million in January 2025 in business exploration (business matching) for MSME actors. This business matching is carried out through trade representatives abroad and includes business presentation sessions and direct meetings with buyers. The MSME Dare to Innovate, Ready to Adapt (BISA) Export Program is one of the main initiatives to encourage exports of Indonesia’s superior products.
The Director General of National Export Development of the Ministry of Trade, Fajarini Puntodewi, said that the recorded purchase transaction of USD 1.55 million came from Singapore, especially for various spice products. In addition, a memorandum of understanding (MoU) worth USD 3.67 million was also signed with various parties, including South Korea which contributed USD 1 million in the wood product, medical device, processed food, and electric vehicle sectors. Throughout January 2025, the Ministry of Trade has held 72 business matching sessions in 33 countries, involving 196 MSMEs from various sectors such as food and beverages, furniture, and health products.
This success is also inseparable from the role of MSME mentors who actively accompany and recommend their fostered business actors. The Ministry of Trade plans to further strengthen synergy with various parties to increase export potential. In February 2025, 75 additional business matching activities will be held with a focus on furniture, agriculture, fisheries, and Muslim fashion products. High optimism accompanies this step considering the great interest of buyers in Indonesian products.
Amidst various global challenges, the Ministry of Trade remains committed to overseeing the realization of every opportunity until it becomes a real transaction. With a synergy, collaboration, and innovation approach, the government continues to support MSMEs in penetrating the export market. In 2024, Indonesia’s non-oil and gas exports reached USD 248.83 billion with significant growth in the agricultural and industrial sectors. Leading products such as cocoa, iron and steel, aluminum, and coffee have experienced a surge in demand, indicating increasingly strong competitiveness in the international market.
