Indonesia continues to strengthen the role of small and medium-sized enterprises (SMEs) as a key pillar of national economic growth, with Deputy Minister of Industry Faisol Riza emphasizing that the rise of new entrepreneurs is directly lifting regional economies. He noted that entrepreneurship is not only about starting new ventures but also about driving social and economic transformation that boosts independence, productivity, job creation, and household income. Although Indonesia recorded 4.4 million SMEs in 2024—representing 99.8% of national entrepreneurship—the entrepreneurship ratio remains at 3.35–3.47% as of early 2025. The government aims to raise this figure to at least 3.6% by 2029, supported by strategic initiatives led by the Ministry of Industry. Director General Reni Yanita highlighted that support goes beyond technical training, extending to incubation, equipment provision, product certification, and improved financial and digital literacy. SMEs also receive assistance in packaging development, intellectual property protection, and greater access to markets and financing, ensuring that new entrepreneurs can grow sustainably.
The government views the expansion of regional industrial entrepreneurs as essential for building a more balanced and resilient national industrial structure. Strengthening SMEs at the local level reinforces supply chains, increases employment opportunities, and drives innovation across regions. Pasuruan Regency in East Java is highlighted as a promising hub for SME growth due to its strong industrial contribution, productive population, and strategic economic potential. To accelerate this momentum, the Ministry of Industry recently hosted the “Growth and Development of New Chemical, Clothing, and Handicraft SME Entrepreneurs” event, involving 120 SME participants from Pasuruan and nearby areas. With East Java contributing 23.79% of Indonesia’s industrial output—and Pasuruan’s industry accounting for 60.65% of its regional GDP—the region is well-positioned to become a major center for SME-driven industrial development.
Source:
https://en.tempo.co/read/2068174/indonesia-pushes-regional-growth-of-new-entrepreneurs
