Strengthening MSMEs Becomes Pillar of National Economic Stability Amid Global Pressures

Jakarta – Economist Syarifuddin Nasution has assessed that the Micro, Small, and Medium Enterprises (MSMEs) sector plays a highly strategic role in maintaining national economic stability amidst various ongoing global economic pressures. Geopolitical uncertainty, currency exchange rate fluctuations, economic slowdowns in several countries, and disruptions to global supply chains are challenges that must be faced by many nations, including Indonesia. Amidst this situation, MSMEs are considered to remain the primary foundation of national economic resilience because they are able to sustain broad-based economic activity within the community. With tens of millions of business units spread across all regions of Indonesia, the MSME sector serves as an economic driver that directly meets the daily needs of the public. “MSMEs are the primary foundation of national economic resilience,” said Syarifuddin. According to him, the characteristics of MSMEs, which rely on the domestic market, local resources, and domestic labour, make this sector more adaptive in facing global economic turmoil compared to sectors with high dependency on imports or external financing. This condition allows MSMEs to continue business activities and maintain the community’s economic turnover even when external pressures occur. Data shows that MSMEs have a very large contribution to the Indonesian economy. The number of MSMEs currently reaches approximately 65.5 million business units and is able to absorb around 119 million workers. Additionally, this sector contributes approximately 61.9 percent to the national Gross Domestic Product (GDP). The magnitude of this contribution makes MSMEs one of the important pillars in creating jobs, increasing public income, and reducing poverty. “Amidst global pressures, this sector has proven capable of maintaining the community’s economic activity because it is based on local resources, local labour, and a strong domestic market,” he continued. Besides being a buffer for the domestic economy, Indonesian MSMEs are also showing positive development in entering the international market. Various export assistance programmes run by the government have helped MSME players expand their market reach overseas. Syarifuddin assessed that the strengthening of MSMEs must be continuously carried out through improved access to financing, digital transformation, strengthening the quality of human resources, product innovation, and expansion of marketing networks. According to him, the successful development of MSMEs cannot be achieved by a single party alone, but requires collaboration between the government, the business world, financial institutions, universities, and the community. “Therefore, strengthening MSMEs must remain a priority so that national economic stability is maintained and economic growth can take place inclusively and sustainably,” he concluded.