The Number of MSMEs Reaches 8.71 Million, Becomes the Best Actor for Economic Recovery

UMKM with technology

Micro, Small, and Medium Enterprises, or MSMEs, have played a major role in the post-Covid-19 economic recovery in Indonesia, which is going very well. This data is based on a report released by the Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UMKM).

Throughout 2022, Indonesian MSMEs recorded very good growth to reach 8.71 business units.

The Ministry of Finance stated that MSMEs managed to account for 90% of business activities and contributed more than 50% of employment worldwide.

This means that MSMEs in Indonesia are currently able to become a savior for Indonesia to face the threat of a recession later.

With government support, of course, it is hoped that it can increase the enthusiasm of business people to continue to develop and even transform into the digital era.

West Java still ranks first with the most MSMEs with a total of 1.49 million business units. While the least area is occupied by Papua with a total of 3.9 thousand units.

Meanwhile, MSMEs are the largest contributor to the economy in West Kalimantan, where these businesses contribute around 70 percent of economic development there.

Furthermore, the Minister of State-Owned Enterprises (BUMN) Erick Thohir continues to collaborate with these business actors who are scattered in the regions to build a sustainable economic system.

He believes collaboration with the private sector and MSMEs can maintain consistency in national economic growth at five percent.

“BUMN is now cooperating with the private sector to build a sustainable economic ecosystem,” said Erick Thohir, Monday (6/2).