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Growth of Indonesian MSMEs until 2023

Adi Ahdiat 10/07/2024 15:53 WIB

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According to data from the Indonesian Chamber of Commerce and Industry (Kadin Indonesia), there were approximately 66 million micro, small, and medium enterprises (MSMEs) in the country in 2023, a 1.5

Number of MSMEs in Indonesia (2018-2023)

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Number of MSMEs in Indonesia (2018-2023)

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According to data from the Indonesian Chamber of Commerce and Industry (Kadin), there were approximately 66 million micro, small, and medium enterprises (MSMEs) in Indonesia in 2023.

This number represents a 1.5% increase compared to 2022 and is the highest recorded since at least 2018.

Kadin Indonesia stated that in 2023, MSMEs contributed approximately 61% to Indonesia's gross domestic product (GDP).

They also estimate that MSMEs absorbed approximately 117 million workers, equivalent to 97% of the total national workforce.

According to Kadin Indonesia, there are several challenges currently facing MSMEs, namely innovation, technology, digital literacy, productivity, legality, financing, and improvement in the performance and quality of human resources.

"Currently, Kadin Indonesia and the government are encouraging the improvement of national MSME performance through a strategy of implementing digitalization to enhance competitiveness, become global players, and be export-oriented," as quoted from Kadin's official website.

"The government, together with Kadin, continues to encourage Indonesian MSME actors to enter the digital ecosystem," it continued.

Based on data compiled by Kadin Indonesia, in 2022 only about 20.76 million MSMEs had entered the digital ecosystem.

Then, in 2023, the target for MSMEs entering the digital market is projected to increase to 24 million, and to 30 million in 2024.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Growth of Indonesian MSMEs until 2023

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