Firm Stance! Bahlil States Preference for Supporting MSMEs Over Large Corporations
The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has asserted that he will prioritise Micro, Small, and Medium Enterprises (MSMEs) over large-scale entrepreneurs. This statement was made while discussing the aspect of equality regarding the management of natural resources, particularly within the mining industry.
According to him, although large companies must be supported because they can provide significant contributions to state revenue, this does not mean that MSMEs should be ignored or even stifled. “We are seeking equality. The large ones need our support, but they must contribute to the state through significant royalties and not kill off MSMEs. If I were asked to choose between large entrepreneurs or MSMEs? I care for large entrepreneurs, but if faced with a choice, I will also prioritise MSMEs,” Bahlil stated during a blood donation event for the 81st Mining Anniversary at Balai Sudirman, Jakarta, on Monday (21/09/2026).
His stance is based on the significant role of the MSME sector, which, according to his records, contributes 61% to Indonesia’s Gross Domestic Product (GDP). Furthermore, MSMEs proved to be the primary pillar of the national economy during the 1998 crisis, when the country experienced a 13% budget deficit and inflation reached 88%.
“That is my choice. Why? Because MSMEs are our economic contribution; 61% of our GDP comes from MSMEs. And these MSMEs are their wealth; if anything happens, they never take it abroad. And during the 1998 economic crisis, when our deficit was 13% and inflation was 88%, what served as the pillar of our national economic defence? Was it large companies? No! It was MSMEs,” he explained.
In the mining sector, he noted that many MSME players are submitting Work Plans and Budget Proposals (RKAB) on a small scale, with production targets ranging from 200,000 to 1,000,000 tonnes. The government believes the presence of the state is crucial so that lower-middle-class entrepreneurs are not left to fight alone against large conglomerates without adequate protection.
“MSMEs are also present in mining now, right? Those requesting RKAB for 500,000, 200,000, 700,000, or 1,000,000 tonnes are MSMEs. If one company dominates everything, I would rather choose many people living than one person wielding power,” he said.
“What must be protected and nurtured is the lower-middle tier. We must not leave the lower-middle tier to compete alone with the giants. It would be as difficult for them to grow as a chicken growing teeth. That is where the presence of the state is needed to maintain balance,” he added.
Bahlil added that the restructuring of the mining sector will be carried out gradually through regulatory reform starting in 2025, the handling of RKAB in 2026, and the maturation of policies in 2027. This restructuring is deemed capable of maintaining the sovereignty of natural resources in accordance with Article 33 of the 1945 Constitution.
“The current trending issue is about the sovereignty of natural resource management, referring to Article 33 of the 1945 Constitution,” he concluded.