The Ministry of Cooperatives and SMEs (Kemenkop UKM) is developing a strategic plan (Renstra) to drive the transformation of micro, small, and medium enterprises (MSMEs) in alignment with the upcoming government's vision of building from villages and grassroots to achieve economic equity and poverty alleviation. Yulius, Deputy for Micro Enterprises at Kemenkop UKM, stated that the ministry, in collaboration with Bappenas, is working to shift the economic structure towards high-value-added industries through the adoption of technology and innovation. This initiative aims to connect MSMEs with larger businesses, fostering the creation of supply chains. Kemenkop UKM has conducted training and mentoring programs to help MSMEs scale up and become suppliers for larger enterprises. In partnership with the Indonesian Employers Association (Apindo), the ministry is working to ensure that small and medium enterprises are not left behind but are actively supported to realize their potential. Additionally, Kemenkop UKM has facilitated financing for MSMEs through the People’s Business Credit (KUR) scheme, offering a competitive interest rate of 6%, much lower than the commercial rate of 20%. Yulius emphasized the need to expand access to innovative financing like KUR, enabling MSMEs to connect with larger businesses through research, technology, business protection, and entrepreneurship development.
One of the key missions of President-elect Prabowo Subianto’s Asta Cita vision is to create quality jobs, promote entrepreneurship, develop creative industries, and continue infrastructure development towards Indonesia Emas 2045. Yulius highlighted the challenge of increasing entrepreneurship, given that 98% of the national business structure is currently dominated by micro enterprises. In 2023, the national entrepreneurship ratio reached only 3.4% and is targeted to rise to 4% this year. To achieve this goal, Kemenkop UKM has initiated EntrepreneurHub, a program focused on nurturing and training young, tech-savvy individuals to become entrepreneurs, contributing to the broader vision of transforming the national economy.
