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

Minister of Micro, Small, and Medium Enterprises (MSMEs) Maman Abdurrahman has stressed the importance of legal certainty and regulation for the development of MSMEs in Indonesia. The government has therefore 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 IDR 4.8 billion are entitled to utilise a final PPh rate of 0.5 percent, whilst those with a turnover below IDR 500 million can obtain a PPh rate of 0 percent. Protection for MSMEs is not only provided through incentives but also by safeguarding the upstream and downstream sectors, including by 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. Meanwhile, the Ministry of MSMEs has recorded positive business performance, with enterprises 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 and training for MSME operators, as well as access to financing to boost business growth. Maman Abdurrahman also noted that the large number of MSMEs, reaching 57 million, and the integration of central and regional systems remain challenges for strengthening Indonesian MSMEs.