Monday, 30 June 2025 12:27

MSMEs Absorb 97% of the Workforce, Encourage the Young Generation to Help Local Economic Growth

The involvement of young people in the development of Micro, Small and Medium Enterprises (MSMEs) continues to be encouraged. Especially in rural areas that have abundant resource potential. In fact, digital literacy and a culture of innovation are considered important provisions for the young generation to encourage local economic growth. Data from the Ministry of Finance (Kemenkeu) states the crucial role of the young generation for regional development through the MSME sector with labor absorption and contribution to Gross Domestic Product (GDP). Based on the data, the contribution of MSMEs to GDP reaches more than 60% and absorbs almost 97% of the workforce in Indonesia. One industry, namely the palm oil plantation center area, which is generally far from the city center, is considered to have great opportunities to develop local products so that they can compete in national and international markets.


In fact, the involvement of young people in building MSMEs in the regions is considered crucial in creating economic independence for the community. This approach aims to expand the village community business sector to create an independent and highly competitive young generation. PT Astra Agro Lestari Tbk (Astra Agro) also encourages the active role of youth in all areas where the company's subsidiary entities are located. Through its subsidiary, PT Letawa, which is located on Sulawesi Island, Astra Agro collaborates with the Inisiasimuda youth community to implement a number of programs in the Tikke Raya area, Pasangkayu Regency, West Sulawesi. Chairman and Founder of Inisiadimuda Fatur Rahman Hidayat Marshas explained that comprehensive training and mentoring are needed, starting from basic knowledge, business analysis to effective marketing strategies to be successful in the market. Not only that, Fatur explained that Inisiasimuda targets to become an independent organization that focuses on Edupreneur and Sociopreneur programs. 

Source:
https://www.jawapos.com/ekonomi/amp/016202270/umkm-serap-97-persen-tenaga-kerja-dorong-generasi-muda-bantu-pertumbuhan-ekonomi-lokal 

 

 

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