The Number of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia Increased in 2022

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Adi Ahdiat 27/10/2023 13:00 WIB

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According to BPS data, in 2022 there were approximately 4.3 million micro, small, and medium enterprises (MSMEs) in Indonesia, employing a total of around 9.4 million people.

Number of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia (2018-2022)

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Number of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia (2018-2022)

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According to data from the Central Statistics Agency (BPS), in 2022 there were approximately 4.3 million micro, small, and medium enterprises (MSMEs) in Indonesia, employing around 9.4 million people.

The MSMEs included in this data are processing/manufacturing industries with fewer than 20 employees per business unit.

Overall, the number of Indonesian micro, small, and medium enterprises (MSMEs) in 2022 increased by approximately 176,000 business units, or 4%, compared to the previous year.

The number of MSMEs decreased in 2020-2021 due to the COVID-19 pandemic, as shown in the graph.

According to BPS, MSMEs are still categorized as informal businesses with generally low productivity and technology usage.

This is consistent with the fact that the majority of MSME owners are elementary school graduates (37.0%), junior high school graduates (20.9%), and senior high school graduates (18.6%).

Meanwhile, very few MSME owners have completed diploma/bachelor's/higher education (3.6%).

"Although they have begun to develop innovative capabilities and production technologies, MSMEs still face several classic problems such as access to capital, marketing, raw materials, guidance, training, and partnerships," said BPS in its report.

"Government intervention through various policies is crucial to help MSMEs in a structured, sustainable, and relevant manner according to their needs," it continued.

In terms of distribution, in 2022, micro, small, and medium enterprises were most numerous in Central Java, accounting for 20.6% of the total national MSME count.

Other provinces with a significant number of MSMEs include East Java (20.2%), West Java (15.4%), East Nusa Tenggara (3.9%), and Bali (3.5%).

Based on business classification, in 2022, the majority of micro, small, and medium enterprises operated in the food processing sector, accounting for 36.7% of the total national MSME count.

Many also operate in the processing of wood/cork/bamboo (non-furniture) (14%), ready-made clothing (13.7%), textiles (7%), and other processing (6%).

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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The Number of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia Increased in 2022

The Number of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia Increased in 2022

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