Micro-, small- and medium-sized enterprises (MSMEs) in Indonesia employ a staggering 97.2 per cent of the country’s total workforce but are contributing only close to 60 per cent of the US$1.2 trillion economy. As one of the major drivers of the Indonesian economy, they appear to be punching below their weight in terms of economic output.
In order for MSMEs to reach greater heights and to contribute more to the economy, they should pursue reforms in three strategic areas: digitalisation, access to credit and collaboration with larger corporations within and outside Indonesia.
Strategic reforms for MSMEs needed
2 November 2021