Indonesia Has the Most MSMEs in ASEAN, But How Competitive Are They?

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Adi Ahdiat 11/10/2022 15:10 WIB

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According to the ASEAN Secretariat report, the number of MSMEs in Indonesia in 2021 reached approximately 65.46 million units. This number is significantly higher than that of neighboring countries.

Number of MSMEs in ASEAN Countries (2021)

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Indonesia Has the Most MSMEs in ASEAN, But How Competitive Are They?

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Number of MSMEs in ASEAN Countries (2021)

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According to the *ASEAN Investment Report* released in September 2022, Indonesia has the highest number of micro, small, and medium enterprises (MSMEs) in the ASEAN region.

The report notes that the number of MSMEs in Indonesia in 2021 reached approximately 65.46 million units. This number is significantly higher than that of neighboring countries, as shown in the graph.

In 2021, Indonesian MSMEs absorbed 97% of the workforce, contributed 60.3% to the Gross Domestic Product (GDP), and contributed 14.4% to national exports.

Indonesia's proportion of MSMEs absorbing the workforce is the highest in ASEAN. In neighboring countries, MSMEs only absorb labor in the range of 35%-85%.

However, in terms of performance, Indonesia still lags behind Myanmar, whose MSMEs contributed up to 69.3% to the local GDP.

Indonesian MSMEs also lag behind Singaporean MSMEs, whose export contribution reached 38.3%, Thailand (28.7%), Myanmar (23.7%), and Vietnam (18.7%).

Currently, the Indonesian government is striving to improve the performance of national MSMEs, including through a digitalization strategy.

"The President has requested that 30 million MSMEs go digital by 2024," said the Deputy for Coordination of Digital Economy, Employment, and MSMEs of the Coordinating Ministry for Economic Affairs, M. Rudy Salahuddin, in a press release on Saturday (1/10/2022).

"We are pushing this through cluster or center systems, because the desired end result is not only that they enter digital platforms, but also that they will succeed in becoming global players and export-oriented," he 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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Indonesia Has the Most MSMEs in ASEAN, But How Competitive Are They?

Indonesia Has the Most MSMEs in ASEAN, But How Competitive Are They?

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Related Data

E-Commerce Transaction Value in Indonesia Increased by 17% in 2024

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Tropical Cyclone Senyar Claims Nearly 1,000 Lives in Southeast Asia

Majority of Indonesian E-Commerce Entrepreneurs are Millennials

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Indonesia Has the Most MSMEs in ASEAN, But How Competitive Are They?

Indonesia Has the Most MSMEs in ASEAN, But How Competitive Are They?

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Related Data

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Indonesian Land Controlled by Forestry Plantation Companies Increases Until 2024

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Majority of Indonesian E-Commerce Entrepreneurs are Millennials

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