10 Business Sectors Dominated by Indonesian Micro, Small, and Medium Enterprises (MSMEs)

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Adi Ahdiat 27/10/2023 14:20 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 operated in the food sector.

Top 10 Business Sectors with the Highest Number of Micro and Small Industries in Indonesia (2022)

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10 Business Sectors Dominated by Indonesian Micro, Small, and Medium Enterprises (MSMEs)

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Top 10 Business Sectors with the Highest Number of Micro and Small Industries in Indonesia (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.

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

In 2022, the majority of micro, small, and medium enterprises (MSMEs) operated in the food industry, accounting for 36.7% of the total national MSMEs.

Many also engaged in wood/cork/bamboo processing (non-furniture) (14%), ready-made clothing (13.7%), textiles (7%), and other processing (6%), with the number of business units as shown in the graph.

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 MSMEs.

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%).

The BPS stated that, in general, micro, small, and medium enterprises are categorized as informal businesses with low productivity and low technology usage.

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

Meanwhile, the proportion of MSME owners who have completed diploma, bachelor's, or higher education is only 3.6%.

"Although they have begun to develop innovative capabilities and production technologies, MSMEs are still hampered by a number of classic problems such as access to capital, marketing, raw materials, guidance, training, and partnerships," said the BPS in its report.

"Government intervention through various policies is crucial to assist MSMEs in a structured, sustainable, and relevant manner, in accordance with the needs of MSMEs," 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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10 Business Sectors Dominated by Indonesian Micro, Small, and Medium Enterprises (MSMEs)

10 Business Sectors Dominated by Indonesian Micro, Small, and Medium Enterprises (MSMEs)

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10 Business Sectors Dominated by Indonesian Micro, Small, and Medium Enterprises (MSMEs)

10 Business Sectors Dominated by Indonesian Micro, Small, and Medium Enterprises (MSMEs)

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