Government Urges Indonesian MSMEs to Learn from India

The Indonesian government believes the development of micro, small, and medium enterprises (MSMEs) in the country must learn from India. Coordinating Minister for Economic Affairs Airlangga Hartarto explained that this is because India is one of the countries that has successfully advanced its MSME sector, making it one of the main foundations of its economic growth. “So if we want MSMEs to grow, we inevitably have to learn from India, because India is one of the countries that has successfully boosted its MSMEs,” Airlangga said during his presentation at the OJK UMKM Finance Summit 2026 on Tuesday (11/8/2026). Airlangga explained that MSMEs in India now not only produce goods but are also able to maintain their markets, allowing the Indian economy to move more rapidly. He did not deny, however, that India also has a significant number of conglomerates. “They not only produce, but they know how to maintain their market, so they can all grow. Even though there are very large conglomerates, the MSMEs keep moving,” Airlangga elaborated. With Indian MSMEs continuing to operate, they help to support the Indian economy, resulting in stronger growth. “Because they can move more, this becomes the basis of the Indian economy,” Airlangga stated. For context, based on records from the Ministry of MSMEs using data from the National Labour Force Survey by BPS as of August 2025, the number of MSMEs in Indonesia currently stands at 56.68 million, a decline from the previous record of around 64 million business units. The majority are micro-enterprises, totalling 54.81 million or 96.8%. This is followed by medium-sized enterprises with 809,344 units or 1.86%, and the remainder are small enterprises at 1.05 million or 1.7%.