The Deputy Minister of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, Helvi Moraza, emphasized the urgent need for technology adoption to boost the competitiveness of Indonesian MSMEs in both domestic and international markets. He highlighted that enhancing production technology is a strategic move to help local products gain a stronger foothold. Currently, more than half of Indonesia’s 30 million MSMEs, approximately 16 million, still use manual or semi-manual equipment. In response, the government is accelerating efforts to modernize production processes and expand digital marketing initiatives. A significant step in this direction is the Labor-Intensive Investment Credit scheme, launching in 2025 with a budget of Rp20 trillion (US$1.19 billion), aimed at facilitating the adoption of modern machinery while also creating jobs. Additionally, the Help Me Grow program, in collaboration with financial institutions and large companies, offers equipment and production tools to MSMEs. With 25 million MSMEs already connected to e-commerce platforms, the government’s focus is now on enhancing product quality and business competitiveness. The Head of the National Research and Innovation Agency (BRIN), Laksana Tri Handoko, underscored the importance of applied research in enabling MSMEs to access new markets, citing technologies like extraction machinery that enhance logistics and product value. During the PRABU Expo 2025 in Jakarta, the Ministry of MSMEs signed an agreement with Bank Indonesia and BRIN to bolster collaboration in financing, research, and innovation for MSME development.
Is tech adoption crucial for MSME growth?
