BI Strengthens MSME and Pesantren Development to Boost Grassroots Economy

Bank Indonesia (BI) has launched an entrepreneurship transformation programme for Micro, Small, and Medium Enterprises (MSMEs), including Islamic boarding schools (pesantren), as part of efforts to strengthen the grassroots economy while supporting job creation. Thousands of MSMEs and pesantren across Indonesia will receive further guidance from BI through this programme to help them advance to the next level. “This programme represents a commitment from BI, the government, and BI’s strategic partners for MSMEs to drive economic growth through integrated entrepreneurship training, MSME self-reliance, as well as job creation and the grassroots economy,” said BI Governor Perry Warjiyo at the Kick Off event for the 2026 Integrated MSME Entrepreneurship Transformation Programme at the BI Complex, Jakarta, Monday (22/6/2026). Perry explained the programme is considered important for several reasons. Firstly, due to conditions of high uncertainty amid global turmoil caused by the war in the Middle East, the US trade war, and geopolitical, financial, and economic uncertainty. “In a situation of high uncertainty, we must become increasingly self-reliant. Whatever happens globally, we have to move on,” he said. Secondly, because MSMEs have enormous potential. MSMEs are a crucial pillar of development, numbering more than 65 million in Indonesia. Although most MSMEs in Indonesia are still small-scale, this sector is capable of creating jobs on a large scale. “Advancing MSMEs means driving growth and creating jobs, improving family welfare, and also securing the future for our next generation,” he stated. Thirdly, because MSME development is a national programme within the Medium-Term Development Plan (RPJM) and is also one of the important pillars of President Prabowo Subianto’s Asta Cita programme, namely the grassroots economy. “So, why is this programme important? One, because the global situation is volatile, we cannot rely on global conditions, let us strengthen our own capabilities. Two, MSMEs are truly a vital pillar for growth, welfare, and a driving force for future generations. Three, let us make this programme an integral part of Asta Cita for the grassroots economy,” he explained. According to Perry, BI has 46 representative offices with more than 3,000 fostered MSMEs. In the pesantren sector, more than 1,500 pesantren across Indonesia are under BI’s guidance. Furthermore, Perry explained that this transformation programme is quite different from similar programmes previously run by BI or other stakeholders. The programme encompasses three processes: entrepreneurship education, certification, and internship trials. He explained that over approximately 2 to 2.5 months, MSME players will receive entrepreneurship education. The guidance at this stage includes not only technical entrepreneurial knowledge but also business skills. After completing that stage, participants will undergo certification as proof of competence. “After certification, they are then immersed in the next stage, the internship trial. This is truly practical, the trendy term is sandboxing,” he said. He added that ultimately, the MSMEs will be given incentives in the form of business capital to establish and develop their businesses.