Governor: MSMEs Play Strategic Role as Regional Economic Drivers

Medan (ANTARA) - North Sumatra Governor Bobby Nasution has asserted that micro, small, and medium enterprises (MSMEs) hold a strategic role as the engine of regional economic growth. “In line with the national economic growth target of eight percent, North Sumatra is aiming for economic growth in the range of 6.7 to 7.1 percent this year,” Bobby said at the opening of the 2026 North Sumatra Creative Works (KKSU) in Medan on Saturday. The governor stated that the KKSU 2026 event is an effort to strengthen the competitiveness of regional MSMEs. Through this initiative, the aim is to mobilise the private sector, optimise domestic potential, and position MSMEs 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 North Sumatra’s MSME products, especially textiles and culinary goods, is beyond doubt and highly capable of competing at both national and global levels. Data from the North Sumatra Cooperatives and SMEs Office for 2025 shows the number of MSMEs in the province has reached 1.4 million units, with the entrepreneurship ratio standing at approximately 4.1 percent and continuing to show an upward trend year on year. “We are also encouraging a shift in MSME marketing orientation from merely selling directly to consumers to entering the industrial supply chain and attracting investors through business-to-business schemes,” Bobby explained. To realise this, the Governor said the North Sumatra Provincial Government will provide mentoring to MSME players across the region. “This ranges from improving packaging quality to preparing feasibility studies, so that products become more bankable and attractive to investors,” Bobby elaborated. Bank Indonesia Deputy Governor Thomas Aquinas Muliatna Djiwandono, who officially opened KKSU 2026, expressed appreciation for North Sumatra’s economic resilience, noting the province recorded 4.98 percent growth amid global economic challenges. He affirmed that Bank Indonesia continues to strengthen macroprudential liquidity incentives for banks to expand access to affordable financing for the MSME sector. “This year’s theme reflects a shared commitment to strengthening the regional MSME ecosystem so they can upgrade. KKSU serves as a bridge connecting MSMEs with financing partners, trading partners, and wider markets,” Thomas said.