MSME Empowerment Program Promotes Regional Economic Independence

Jakarta – The government is increasingly committed to promoting regional economic independence by strengthening Micro, Small, and Medium Enterprises (MSMEs).

The Minister of MSMEs, Maman Abdurahman, stated that the government provides two main financing schemes: the People’s Business Credit (KUR) with government subsidies and alternative financing outside of KUR.

Maman emphasized the importance of disciplined financial management. “No matter how good access to capital is for businesses, it will be useless without disciplined financial management,” he said.

He added that misuse of capital can actually worsen the credit record in the Financial Services Authority (OJK)’s SLIK (Small and Medium Enterprises) and hinder MSMEs from moving up a class.

In addition to KUR, the government is also opening up the opportunity to use Land Title Certificates (SHAT) as loan collateral.

This support is strengthened by collaboration with Baznas, PT Pegadaian, PNM, and Bank BJB.

“The government is always ready to help its people. But don’t abuse the easy access provided,” Maman said.

The Coordinating Ministry for Community Empowerment (Kemenko PM) is undertaking a similar effort through the “Berdaya Bersama” program in collaboration with Loid Ventures.

The Deputy for Community Economic Empowerment, Leontinus Alpha Edison, explained that this program is designed to provide intensive incubation.

“Our task is not just to provide training, but to open concrete doors: capital and markets,” he said.

The program will last three months, featuring a structured curriculum, mentoring from CEOs and industry practitioners, and opportunities for the top ten MSMEs to obtain initial funding support.

Government data shows that MSMEs contribute more than 60 percent to national GDP, employ nearly 97 percent of the workforce, and support 15.7 percent of Indonesia’s exports.

Tanti Senjaya, Government Relations Specialist at Loid Ventures, emphasized her company’s commitment to supporting the national business ecosystem.

“With an end-to-end approach encompassing education, facilities, and capital, we hope this initiative will have a real impact and support the acceleration of national economic growth in line with President Prabowo Subianto’s vision,” she said.

This program is expected to produce MSMEs that are more adaptive to market changes, especially in the digital era.

Through digital transformation, small businesses can expand their marketing reach, increase competitiveness, and strengthen local supply chains.

The government also emphasizes the importance of cross-sector collaboration, including with the private sector, educational institutions, and communities, to create a sustainable ecosystem.