Video: Combating Illegal Imports, MSMEs Minister Reveals How to Protect Local Enterprises

The Minister for MSMEs, Maman Abdurrahman, has emphasised the importance of legal certainty and regulation for the development of MSMEs in Indonesia. Consequently, the government, through the issuance of Government Regulation (PP) Number 20 of 2026, has adjusted the final Income Tax (PPh) policy for micro, small, and medium enterprise operators.

For MSMEs with an annual turnover of below Rp 4.8 billion, they are entitled to utilise a final MSME income tax rate of 0.5%. However, MSMEs with a turnover of below Rp 500 million can benefit from a 0% income tax rate.

In addition to providing incentives, the protection of MSMEs involves safeguarding the entire supply chain, including suppressing the circulation of illegal imported products, such as those from China. The Ministry of MSMEs and the Ministry of Industry are collaborating to strengthen the monitoring system for imported products on e-commerce platforms while simultaneously improving product quality.

On the other hand, the Ministry of MSMEs has noted the positive performance of MSME businesses that have successfully entered and grown within the global market. Through the SAPA MSME application, the government is encouraging the use of Artificial Intelligence (AI), product education, and business training, alongside providing access to financing to boost MSME business growth.

Maman Abdurahman also noted that the vast number of MSMEs, reaching 57 million, and the need for integrated systems between central and regional governments, remain significant challenges in strengthening Indonesia’s MSME sector.