Indonesian Government Makes MSME Sector Key to Economic Growth and Equity
Jakarta – The government continues to demonstrate its commitment to encouraging the Micro, Small, and Medium Enterprises (MSMEs) sector as the main driver of economic growth and equity. One of the concrete steps taken is through the revision of the Mineral and Coal Law (UU Minerba) which provides opportunities for MSMEs to participate in the management of natural resources.
The Minister of Micro, Small, and Medium Enterprises (MSMEs), Maman Abdurrahman, emphasized that granting mining business permits (IUP) for MSMEs is a strategic step in increasing the competitiveness of small and medium entrepreneurs.
“This is a form of acceleration so that MSMEs can move up to a larger business scale,” he said.
According to Maman, this policy is the result of collaboration between legislative and executive institutions to accelerate national economic growth. With this new regulation, small and medium entrepreneurs are given space to manage mining in a more fair and sustainable manner. However, only MSMEs that have certain competencies and qualities can obtain mining management permits.
The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, also emphasized that mining permits for MSMEs will be more focused on regional business actors.
“For example, nickel in North Maluku will be given to MSMEs in North Maluku, not to MSMEs from Jakarta,” he explained. This step aims to reduce economic inequality and encourage the growth of the business sector in the regions.
Furthermore, Bahlil said that the MSME sector has a large contribution to the national economy, namely more than 60% of the Gross Domestic Product (GDP) and creates 120 million jobs from a total of 130 million workers in Indonesia. Therefore, providing wider access to MSMEs in the mining sector is expected to improve people’s welfare more evenly.
In addition to MSMEs, the revision of the Minerba Law that has been passed by the DPR also opens up opportunities for cooperatives and religious community organizations to participate in the mining industry. However, the government will continue to implement an auction scheme with priority for MSME actors to ensure fairness in the distribution of national natural resources.
Minister of Law, Supratman Andi Agtas, added that the auction mechanism will still be implemented, but with a priority scheme for MSMEs and cooperatives.
“This is an important step to ensure that all components of the nation can access and manage natural resources fairly,” he said.
With this policy, the government hopes to create more large entrepreneurs from the regions, while reducing economic inequality which has so far been a challenge for national growth. With the participation of MSMEs in the mining sector, it is hoped that the Indonesian economy can grow inclusively and sustainably.
