Central Java, Province with the Most Micro, Small, and Medium Enterprises (MSMEs) in 2022

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Adi Ahdiat 27/10/2023 13:16 WIB

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According to BPS data, in 2022 there were approximately 4.3 million micro and small industrial business units in Indonesia, the majority of which were located in Central Java.

Number of Micro, Small, and Medium Enterprises (MSMEs) in 34 Indonesian Provinces (2022)

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Central Java, Province with the Most Micro, Small, and Medium Enterprises (MSMEs) in 2022

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Number of Micro, Small, and Medium Enterprises (MSMEs) in 34 Indonesian Provinces (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.

In 2022, the highest concentration of micro, small, and medium enterprises (MSMEs) was in Central Java, accounting for 20.6% of the national total.

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%), with the number of business units detailed in the graph.

Based on business classification, in 2022 the majority of MSMEs operated in food processing, accounting for 36.7% of the national total.

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

According to BPS, in general, MSMEs are still categorized as informal businesses with 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 assist MSMEs in a structured, sustainable, and relevant manner, in line with their needs," it continued.

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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Central Java, Province with the Most Micro, Small, and Medium Enterprises (MSMEs) in 2022

Central Java, Province with the Most Micro, Small, and Medium Enterprises (MSMEs) in 2022

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