MSMEs' Contribution to the Economy Continues to Grow

Micro, Small, and Medium Enterprises (MSMEs) continue to contribute to the Gross Domestic Product (GDP) year after year. The contribution of MSMEs to the GDP at constant prices amounted to Rp 7,034.1 trillion in 2019, up 22.9% from the previous year's Rp 5,721.1 trillion.

Meanwhile, the contribution of MSMEs to the GDP at current prices amounted to Rp 9,580.8 trillion. This contribution increased by 5.7% from the previous year's Rp 9,062.6 trillion.

Furthermore, Indonesian MSMEs contributed to the absorption of 119.6 million or 96.92% of the total workforce in Indonesian business units. This workforce absorption increased by 2.21% from 2018.

The significant contribution of MSMEs is due to the fact that the majority of Indonesian business units are contributed by MSMEs. As many as 64.2 million or 99.99% of Indonesian business units are MSMEs. The details are: 63.4 million are Micro Enterprises (UMi), 783.1 thousand are Small Enterprises (UK), and 60.7 thousand are Medium Enterprises (UM).

Meanwhile, Large Enterprises (UB) only number 5.5 thousand or 0.01% of the total Indonesian business units. The workforce absorbed by these business units amounts to 3.6 million or 3% of the total Indonesian workforce.