Micro, Small, and Medium Enterprises (MSMEs) play a crucial role as the backbone of Indonesia’s economy. Recent data from the Ministry of Cooperatives and MSMEs shows that in 2023, MSMEs contributed 61.1% to the Gross Domestic Product (GDP), 97% of national job absorption, and 15.7% to exports.
Despite this, the sector still faces significant challenges, particularly in terms of access to capital, management, and technology adoption. Technology has the potential to enhance productivity for MSMEs in Indonesia. At the same time, the profiles of MSME actors are quite diverse, including those with relatively low digital and financial literacy.
As explained by Lucia Karina, Director of Sustainability at Coca-Cola Europacific Partners, during Real Talk: MSMEs and SDGs for Golden Indonesia 2024 at MBA UGM Jakarta Campus on September 4, 2024, “Legal aspects that do not meet requirements, access to permits, and financial incentives from the government are obstacles to the growth of MSMEs in Indonesia,” said Karina. Additionally, Risa Virgosita, Ph.D., a lecturer and team member of the Entrepreneurship, Innovation, and MSMEs Study Program at the Faculty of Economics and Business, Gadjah Mada University (FEB UGM), explained that besides legal issues and digital literacy, mentoring and support are also considered insufficient.
Therefore, FEB UGM has established the Entrepreneurship, Innovation, and MSMEs Study Program to help MSMEs develop in Indonesia. One of its programs is mentoring with Industry Associations. Partnering with the Indonesian Craft Entrepreneurs Association (APIKRI), various activities have been conducted, such as creating marketing modules, training of trainers, and craft product exhibitions. “We also involve FEB UGM lecturers with an interest in entrepreneurship and practitioners to assist MSME friends in developing their businesses,” Risa explained.
In addition to FEB UGM, CCEPI has also developed programs to support MSME empowerment in Indonesia. Partnering with APINDO and students, CCEPI provides real-life experiences for students to engage directly and help business actors by applying their knowledge to improve MSME quality.
(sap/ara)
