RI’s MSMEs find it difficult to move up to class, squashed by Reseller News – 1 hour ago

Jakarta, CNBC Indonesia – The government’s efforts to encourage MSMEs to advance to face challenges amidst the massive development of information technology. Business actors, the majority of whom are micro-entrepreneurs, are actually faced with price wars on digital platforms.

Another problem is that MSMEs are dominated by resellers rather than producers. This results in the multiplier effect of MSMEs not being so large. What’s worse is that MSMEs, the majority of which are micro businesses, are subsistence businesses.

“The digital economy contains 90 percent of our business actors who are resellers, not producers. So this is a tough task for us and the relevant Ministry of Institutions that foster SMEs, KemenKopUKM is only the coordinator,” said Assistant Deputy for SME Financing and Investment, Deputy for SMEs, KemenKopUKM, Temmy Satya Permana, last weekend.


Another challenge for MSMEs towards a golden Indonesia in 2045 is the influx of imported products. This has resulted in increasingly difficult challenges for MSMEs, especially producers.

In order to protect the domestic market, the government through the Ministry of Trade (Kemendag) issued Minister of Trade Regulation (Permendag) No 31/2023 concerning Business Licensing, Advertising, Development and Supervision of Business Actors in Trading Through Electronic Systems.

“One way we can limit the flow of goods into our country is through wise and strict regulations. Apart from that, we need to educate the public to love domestic products,” he explained.

On the same occasion, Director of the Marketing Services Institute (LLP) KUKM or Smesco Indonesia Leonard Theosabrata emphasized that in achieving MSMEs in the future, it should no longer be about expanding the micro economy. In fact, it enlarges the large economic structure of 1 percent.

“However, this (large economic expansion) is considered not common. If the micro economy gets bigger it will actually create an economy that is only subsistence (only enough to meet daily needs),” he said.

MSME business opportunities in RI

Not only that, continued Leo, MSMEs in 2045 must also create trend setters who grow derivative industries from creative movements. Apart from that, those who focus on the SDGs sector such as agro base are also industries that will continue to grow in the future.

However, in reality, this segment of the industry is still difficult from an investment perspective.

“Currently, there is no longer a need to talk about what MSMEs will be like in the future, but action is more important. Honestly, I am still worried about how the demographic bonus will be, the amount will not be trivial, but will only provide subsistence employment opportunities.” he said.

Meanwhile, Executive Director of the Institute for Development of Economics and Finance (Indef) Tauhid Ahmad emphasized that for Indonesia to become a developed country in 2045, there are at least several conditions that must be met. Among other things, the requirement for economic growth must reach a minimum of 6-7 percent.

“In Indonesia, if you look at the RPJMN and the reality is that there is still a gap, from 2015 to 2023 it reached 4.1 percent including the pandemic. However, outside the pandemic, economic growth is around 5 percent,” he said.

Then, the level of per capita income towards a Golden Indonesia must also reach a minimum of 12,000 US dollars per capita in 2030 and reach 14,000 US dollars per capita in 2045. Then the inflation rate, stable interest rates, and population and exchange rates.

[Gambas:Video CNBC]

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