MSME Ministry Strengthens Ecosystem to Boost Exports

Minister of MSMEs Maman Abdurrahman has stressed the importance of legal certainty and regulations for the development of MSMEs in Indonesia. The government has issued Government Regulation (PP) Number 20 of 2026 concerning adjustments to the final Income Tax (PPh) policy for micro, small, and medium enterprise operators. MSMEs with an annual turnover below Rp 4.8 billion are entitled to utilise a final MSME PPh rate of 0.5 percent, while those with a turnover below Rp 500 million can obtain a PPh rate of 0 percent. Beyond incentives, MSME protection is also carried out by safeguarding the upstream-downstream sector, including curbing the circulation of illegal imported products such as those from China. The Ministry of MSMEs and the Ministry of Industry are cooperating to strengthen the supervision system for imported products in e-commerce while simultaneously improving standards and quality. The Ministry of MSMEs has also recorded positive business performance, with MSMEs successfully growing and moving up a class to enter the global market. Through the SAPA UMKM application, the government is promoting the use of Artificial Intelligence (AI) technology, product education, training for MSME operators, and access to financing to increase MSME business growth. Maman Abdurrahman also noted that the large number of MSMEs, reaching 57 million, and the integration of central and regional systems pose challenges for strengthening Indonesian MSMEs.