TEMPO.CO, Jakarta - The government targets at least 20 micro, small, and medium-sized enterprises (MSMEs) graduate to medium-sized enterprises annually. Coordinating Minister for Economic Affairs Airlangga Hartarto said that this program is part of the strategy to improve the competitiveness of MSMEs through capital access, fiscal incentives, and technical assistance from various relevant ministries and institutions.

"We from the Office of the Coordinating Ministry for Economic Affairs will ask BRI to nurture the top 20 MSMEs to enable them to upgrade. Annually, at least 20 MSMEs graduate from small businesses to become strong medium-sized enterprises," said Airlangga at the BRI Microfinance Outlook 2025 event on Thursday, January 30, 2025.

To reach this target, Airlangga mentioned that the government prepares various programs, including free halal certification, export assistance, and more flexible financing schemes for MSMEs looking to grow. Besides that, digitalization programs and National Shopping Day are also expected to boost demand for domestic MSME products.

"Various ministries have training centers such as leather and textile schools. This is important to enhance production capacity and competitiveness of business actors," said Airlangga.

The government also provides fiscal incentives in the form of value-added tax (VAT) exemption for raw materials used in exports, as well as the Export Destination Import Facility (KITE) scheme that helps MSMEs obtain raw materials at more competitive prices.

This government initiative is expected to significantly boost MSMEs to become more competitive at the national and global levels. "With programs such as Proud of Indonesian Made, as well as MSME digitalization, we will attract more domestic demand for local products," he said.

With the government and banking sector support, more MSMEs are expected to upgrade and contribute significantly to the national economy.

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