Interior Minister Emphasises Importance of Strengthening MSMEs and Halal Market Potential at Closing of Riau Islands Ramadan Fair 2026

Interior Minister Muhammad Tito Karnavian emphasised the importance of strengthening the role of micro, small and medium enterprises (MSMEs) and expanding the market for halal products for regional economic development.

According to him, strengthening these two sectors is crucial to maintain economic stability whilst capitalising on growing market opportunities at both national and global levels.

“MSMEs are indeed our primary economic backbone, the real sector,” said Tito in a written statement received by Kompas.com on Monday, 9 March 2026.

This was stated by Tito during the closing ceremony of the Riau Islands Ramadan Fair 2026 in the grounds of the Dekranasda Building in Tanjungpinang City, Riau Islands, on Sunday, 8 March 2026.

Tito cited the success of the Yogyakarta Special Region Provincial Government, which managed to recover its economy to 5.53 per cent in 2021, after declining to 0.68 per cent during the 2020 pandemic.

He explained that the success of economic recovery in Yogyakarta was supported by the MSME sector, which contributed 79.6 per cent to economic growth.

Furthermore, Tito assessed that Indonesia possesses exceptionally diverse handicraft potential and ranks amongst the world’s largest, and therefore needs to be continuously maximised.

According to him, local handicraft products should no longer be viewed merely as ordinary goods, but as part of the creative economy sector with high competitiveness in the global market.

On another note, Tito also touched upon the halal product market opportunity. Currently, the world’s largest halal product producers are dominated by non-Muslim majority countries, such as China and Brazil.

Tito believes that Indonesia should be capable of competing and taking on the role of producer, rather than merely being a consumer.

Furthermore, Tito appreciated the economic growth of Riau Islands Province, which has leveraged its geographical proximity to Singapore as a destination for exporting regional products.

Based on presented data, Riau Islands recorded economic growth of 7.89 per cent year-on-year in the fourth quarter of 2025.

This figure is above the national economic growth rate of 5.39 per cent.

Nevertheless, Tito reminded of the importance of economic parity between developed regions and remote island areas.