MSMEs constitute a pillar of the economic policy of the new Indonesian president

Jakarta (VNA) The government of new Indonesian President Prabowo Subianto has emphasized that micro, small and medium enterprises (MSMEs) will become one of the pillars of the national economy.

MSMEs are one of the pillars of national economic growth, as Indonesia has 66 million MSMEs, accounting for 99% of the country's total business units.

Prabowonomics – Prabowo's economic policy – aims for 8% economic growth and the elimination of poverty by focusing on investment, exports and strategic sectors such as agriculture, manufacturing and technology. The economic growth target is much higher than the 5% range achieved during the era of former President Joko Widodo.

Thus, MSMEs will play a key role in job creation in Indonesia. This sector employs approximately 97% of the country's workforce, making MSMEs a key driver of the country's economy.

Prabowonomics focuses on food and energy sovereignty and improving the competitiveness of national industries. The decision to create separate ministries for cooperatives and MSMEs under President Prabowo reflects the strategic importance of MSMEs in Indonesia's economic landscape. This ministerial division allows for more concentrated government support and oversight of the MSME sector.

By creating an autonomous ministry for MSMEs, the government is signaling its determination to harness the sector's potential in pursuit of its 8% economic expansion target. Through the ministry, the government can more effectively implement programs aimed at advancing MSMEs. The Ministry of MSME can also help address the biggest challenges facing MSMEs, such as expanding market and access to finance, as well as the use of technology.

MSME empowerment programs, such as those carried out by state-owned enterprises, can serve as a model for collaborative programs aimed at uplifting MSMEs by improving their technology literacy.

These collaborations, along with government support and strengthening regulations, are expected to accelerate the growth of MSMEs in Indonesia and help them continue to drive sustainable economic growth./.

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