Data Check: Gibran Claims MSMEs Contribute 61% to GDP, Is It True?

Vice Presidential Candidate number two, Gibran Rakabuming Raka, stated that micro, small, and medium enterprises (MSMEs) make a significant contribution to the national Gross Domestic Product (GDP).

He made this statement during the second 2024 Presidential and Vice Presidential Debate series themed "Economy, Finance, Investment, Tax, APBN-APBD Management, Infrastructure, and Urban Development" at the Jakarta Convention Center on Friday, December 22, 2023.

In the vision-mission presentation session, Gibran said, "We will continue to boost the creative economy and MSMEs. We have 64 million MSMEs that contribute 61% to our GDP."

Gibran's statement is in line with data from the Ministry of Cooperatives and SMEs, recorded in a research report by the Katadata Insight Center (KIC).

According to the report, in 2019, micro businesses contributed 37.4% to the total GDP, small businesses contributed 9.5%, and medium businesses contributed 13.6%.

Combined, the contribution of MSMEs to the GDP in 2019 reached 60.5%, higher than the contribution of large businesses, which was 39.5%.

The report also notes that in 2022, MSMEs contributed 61.9% to the total GDP and absorbed approximately 97% of the local workforce.