From Market Diagnosis to Exports, New Strategy to Revive SMEs
JAKARTA — The Minister for SMEs has stressed that the root cause of SME growth in Indonesia is no longer a financing issue, but rather an unhealthy domestic market. Whilst the regional government and the Ministry of Trade continue to implement concrete strategies to support business actors, from maintaining price stability to opening export market access.
According to him, the fundamental problem hindering SME growth in Indonesia is not access to financing, but rather an unhealthy domestic market. Although support through the People’s Business Credit (KUR), training programmes, and production facilities have increased over the past two decades, SME growth remains stagnant.
“Today’s problem is not in production access or financing. That has already increased and is supported by the government, banks, universities, and the private sector. But why is SME growth still sluggish? Because the problem is in the market,” said Maman at a media briefing in Jakarta on Friday.
Maman explained that since KUR was launched in 2007, total banking credit has reached Rp8.149 trillion, with SME credit amounting to Rp1.580 trillion or 19.4 per cent, whilst non-SME credit stood at Rp6.569 trillion or 80.6 per cent.
The realisation of KUR disbursement in 2025 has reached Rp270 trillion with 4.58 million borrowers, comprising 2.75 million new borrowers and 1.54 million graduating borrowers.
Despite continuous increases in credit disbursement figures, Maman highlighted the state of the domestic market, which he described as “contaminated”, flooded with cheap imported goods, including those entering illegally.
He explained that the phenomenon of under-invoicing has worsened the situation, with export data from partner countries far exceeding Indonesia’s import records. “For instance, if our imports are recorded at 100, China’s export records show 900. This means there are 800 goods that are unrecorded, flooding our market,” he said.
Maman considered this situation not merely a matter of state revenue, but already a social problem. SME products that should support the people’s economy are being crowded out by a flood of imported goods. “We seem to be caught in a vicious circle, blaming each ministry or the KUR programme. Yet the key lies in the domestic market that must be cleaned up,” he asserted.
Whilst the SME Minister highlighted structural problems at the market level, regional governments are taking concrete steps to assist communities and SME operators at the grassroots level.
The Karawang District Government, West Java, together with the Karawang Military Command (Kodim 0604/Karawang), held a Low-Cost Food Movement Ramadhan Bazaar at the Merah Putih Cooperative in Balonggandu Village, Jatisari District, Karawang, on Friday.
Karawang Regent Aep Syaepuloh stated that the Low-Cost Food Movement is an instruction from the Indonesian President to maintain price stability of basic commodities and help communities meet their needs during the holy month of Ramadhan 1447 Hijri.
“Through this Low-Cost Food Movement, the regional government together with Kodim 0604/Karawang wants to ensure the availability of basic commodities at affordable prices for the community, particularly approaching and during Ramadhan at the Merah Putih Cooperative,” he said.