MSMEs play important role in Indonesian economy

Jakarta, InfoPublik - Micro, Small, and Medium Enterprises (MSMEs) play a vital role in Indonesia’s economy. Based on the Indonesia’s Central Statistics Bureau (BPS) in 2014, there were 57.89 million of MSMEs or 99.99% of the total national business.

MSMEs provided 96.99 percent of job opportunities and contributed 60.34 percent of the total GDP. It also showed that Indonesia had the largest number of MSMEs in the world.

“MSMEs sector is able to support economic independence. Thus, we invite enterprises whose products need manual handling finishing to join the Process Partnership 
[KP] program,” said Tjiwi Kimia paper factory spokesman Sugiyanto, Sunday (10/9).

The factory provided capital aid, in addition to raw material to maintain products quality. Some of KP programs are shopping bags, hard covers, and printing products.

“The program has partnered with 27 business groups with dozens to hundreds members each,” he said.

It is estimated that the number of work force that is absorbed from this partnership reaches 1,400 people from villages around the factory. It comprises of 27 villages in 7 districts in Mojokerto, Sidoarjo, and Jombang regencies.

One of the business partners, KP Shopping Bag Masni’ah is now able to employ 60 workers. It was founded by an inexperience housewife, but it manages to get tens of million rupiah monthly profit.  

“My husband initially was not confident with this business. I even had never had a job before,” she said.

At least 30,000 shopping bags are produced by Masni’ah and her employees every month. When it was founded in 2000, she only employed four employees. Most of the employees were women and housewives. It is good to support their families’ economy.

KP Shopping Bag provides finishing works like folding, gluing, and strap mounting for bag or shopping bag. The enterprise has been diversifying since 1996 and the business partnership was started in the following year. (Translator: Erik Limantara)