MSME Ministry asks additional Rp1.5 trillion for fiscal year 2027

we see a strong urgency to propose additional funding in 2027Jakarta (ANTARA) - The Ministry of Micro, Small, and Medium Enterprises (MSMEs) has proposed an additional budget of Rp1.5 trillion for fiscal year 2027 to strengthen various priority programmes aimed at promoting growth and development of MSMEs.

MSME Minister Maman Abdurrahman, during a meeting with Commission VII of the Indonesian House of Representatives (DPR RI) here on Thursday, said the proposed additional budget was submitted because the need to strengthen MSME empowerment programs is expected to become more urgent in 2027.

“For 2026 budget, the Ministry did not propose any additional budget at all. However, considering many needs related to encourage the growth and development of MSMEs, we see a strong urgency to propose additional funding in 2027,” Abdurrahman said.

Based on the indicative budget ceiling set by the Ministry of Finance, for the next fiscal year 2027, the Ministry of MSMEs has been allocated Rp459.13 billion.

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According to Abdurrahman, the proposed additional budget of Rp1.5 trillion consists of two main components, Rp622 billion for economic rehabilitation programmes for disaster-affected MSMEs in Sumatra and around Rp900 billion to support the government’s priority and strategic programmes.

The economic rehabilitation budget will be used to provide presidential assistance to micro-enterprises affected by disasters.

The government is targeting 200 thousand MSMEs in three disaster-affected provinces in Sumatra to receive assistance amounting to Rp3 million per business owner, he said.

Meanwhile, the additional budget for priority and strategic programmes will be allocated to various units, including Rp223 billion for the Deputy for Micro Enterprises, Rp110 billion for the Deputy for Small Enterprises, Rp92 billion for the Deputy for Medium Enterprises, Rp136 billion for the Deputy for Entrepreneurship, Rp185 billion for the Ministry’s Secretariat, and Rp151 billion for de-concentration funds.

If approved, the proposed additional budget would increase the Ministry’s total budget ceiling for 2027 to around Rp1.98 trillion from the initial indicative ceiling of Rp459.13 billion.

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Translator: Ahmad, Kenzu