Indonesian Political, Business & Finance News

Governor: MSMEs Play Strategic Role as Regional Economic Drivers

| Source: ANTARA_ID Translated from Indonesian | Economy
Governor: MSMEs Play Strategic Role as Regional Economic Drivers
Image: ANTARA_ID

Medan (ANTARA) - North Sumatra Governor Bobby Nasution has affirmed that micro, small and medium enterprises (MSMEs) play a strategic role as the driving force of the regional economy.

“In line with the national economic growth target of eight per cent, North Sumatra is targeted to record economic growth of around 6.7 to 7.1 per cent this year,” Bobby said while attending the opening of Karya Kreatif Sumatera Utara 2026 in Medan on Saturday.

The Governor said the staging of Karya Kreatif Sumatera Utara (KKSU) 2026 is an effort to strengthen the competitiveness of micro, small and medium enterprises in the region.

Through this event, it is hoped that the private sector can be mobilised, domestic potential optimised, and MSMEs positioned as accelerators of economic growth amid global economic uncertainty.

“To balance budget adjustments and global economic dynamics, we must mobilise the private sector and optimise domestic potential, particularly among MSME players,” he said.

He added that the quality of MSME products in North Sumatra, from traditional textiles to culinary goods, is beyond doubt and highly capable of competing at national and global level.

Data from the North Sumatra Cooperatives, Small and Medium Enterprises Office in 2025 shows the number of MSMEs in the province reached 1.4 million units, with an entrepreneurship ratio of around 4.1 per cent, showing a continued upward trend year on year.

“We are also encouraging a shift in MSME marketing orientation, from simply selling directly to consumers to entering industrial chains and attracting investors through business-to-business schemes,” Bobby explained.

To realise this, the Governor said, the North Sumatra Provincial Government will provide assistance to MSME players across the region.

“Ranging from improving packaging quality to preparing feasibility studies, so that products become more bankable and attractive to investors,” Bobby elaborated.

Deputy Governor of Bank Indonesia Thomas Aquinas Muliatna Djiwandono, who officially opened KKSU 2026, commended North Sumatra’s economic resilience for recording growth of 4.98 per cent amid global economic challenges.

He affirmed that Bank Indonesia continues to strengthen macroprudential liquidity incentives for the banking sector in order to expand access to affordable financing for MSMEs.

“This year’s theme reflects a shared commitment to strengthening the regional MSME ecosystem so it can move up a class. KKSU serves as a bridge connecting MSMEs with financing partners, trading partners and broader markets,” Thomas said.

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