The Indonesian government is encouraging Micro, Small, and Medium Enterprises (MSMEs) to expand and penetrate the global supply chain. Coordinating Minister for Economic Affairs Airlangga Hartarto highlighted this at the "Pesta Rakyat UMKM untuk Indonesia" event, organized by the Indonesian Chamber of Commerce and Industry (KADIN), PT HM Sampoerna Tbk, and Japan External Trade Organization (JETRO) Indonesia, in Jakarta on July 22. President Joko Widodo has urged MSMEs not only to advance, go digital, and dominate the local market but also to go international and enter export and global markets. MSMEs are a crucial part of the national economy, representing about 99% of all business units in Indonesia, contributing 60.51% to the national GDP, and absorbing nearly 97% of the total workforce. Currently, MSMEs contribute only about 15.7% to national exports, lagging behind Singapore (41%) and Thailand (29%). To support MSME exports, the government has established the National Export Enhancement
The government has implemented various financing supports for MSMEs to boost export activities, including Ultra Micro Financing (UMi), People's Business Credit (KUR), PNM Mekaar, and PNM Ulaam. Additionally, the Export-Import Financing Agency (LPEI) provides export financing for MSMEs through the Export Working Capital Financing Facility (PMKE), offering working capital specifically for exports, and facilitates guarantees and insurance. Programs to strengthen MSME export capacity, including financing and digital-based training and mentoring, are vital for expanding the MSME export base. Developing an MSME export database is also crucial for aligning and targeting programs effectively. Increasing market information access through Indonesian representatives abroad, the Indonesian diaspora, and institutions in partner countries is essential for promoting MSME exports. Sampoerna consistently supports MSMEs in advancing to the global market through its "Sampoerna for Indonesia'' sustainability program. It features the Sampoerna Retail Community (SRC) for small shops and the Sampoerna Entrepreneurship Training Center (SETC), which has supported over 320,000 MSMEs across Indonesia. Airlangga called for collaboration with the Pre-Employment Card program, which has trained 18 million people over three years, to scale up MSME training significantly.
Source: https://www.rri.co.id/internasional/846916/pemerintah-dorong-umkm-indonesia-pasok-rantai-industri-global










