Micro Businesses Still Dominate MSMEs: How Many Are There?

The Ministry of Cooperatives and Small and Medium Enterprises (Kemenkopukm) recorded 64.2 million micro, small, and medium enterprises (MSMEs) in Indonesia in 2021.

Micro businesses, with a turnover criterion of a maximum of Rp2 billion per year, were the most dominant in the MSME structure. Micro businesses reached 63,955,369 units in 2021, contributing 99.62% of the total business units in Indonesia. Their proportion has not changed significantly in the last 10 years.

Meanwhile, the number of small businesses, with a turnover criterion of Rp2-15 billion per year, was only 193,959 units. These businesses contributed 0.3% of the total MSMEs.

Furthermore, medium-sized businesses, with a sales turnover criterion of Rp15-50 billion per year, numbered 44,728 units or 0.07%.

Finally, there were 5,550 large businesses, or 0.01%. These businesses have a turnover of more than Rp50 billion per year.

The Ministry of Finance (Kemenkeu) states that most MSMEs still face various challenges, such as difficulties in upgrading, limited access to digitalization, difficulty penetrating the global market, and a lack of financial services.

Despite this, Indonesian MSMEs absorb 97% of the workforce, contribute 57% to the Gross Domestic Product (GDP), and contribute 15% to national exports.

(See also: [Here are the MSME criteria based on their sales turnover according to PP 7 Number 2021](https://databoks.katadata.co.id/datapublish/2023/05/19/inilah-kriteria-umkm-berdasarkan-hasil-penjualannya-menurut-pp-7-nomor-2021))