“MSMEs have long been the backbone of Indonesia’s economy and are essential to becoming a developed nation,” he said at the opening of the 2025 Indonesia Creative Works (KKI) event in Jakarta on Thursday.
With more than 65 million MSMEs across the country, Warjiyo said they have the potential to serve as a major engine of economic growth, especially if their development is further accelerated.
He also noted that MSMEs are notably resilient during times of crisis and market volatility. Moreover, a significant portion of MSME entrepreneurs are women, many of whom support their families and fund their children’s education.
“This is why MSMEs represent more than just economic growth,” Warjiyo said. “Every MSME success story contributes to national resilience and supports the future of the next generation.”
Warjiyo outlined the central bank’s inclusive economic and financial development strategy, which focuses on enhancing competitiveness, expanding financial access, and strengthening financial literacy and inclusion.
Competitiveness is being improved through support for sectors such as traditional textiles, crafts, coffee, and local culinary businesses. Financial access is being expanded via digital business matching platforms that connect MSMEs with financial institutions. Meanwhile, BI is working to boost financial literacy and inclusion through nationwide educational modules and training programs.
In the first quarter of 2025, Bank Indonesia supported 2,537 MSMEs — mostly micro enterprises in manufacturing, agriculture, livestock, and fisheries. These businesses recorded an average revenue increase of 13.3 percent year-on-year.
Among them, 431 MSMEs reported a 59.7-percent increase in export revenue, while 1,655 businesses using digital platforms achieved a 29.9-percent growth in revenue. MSME financing also rose by 16.8 percent in the same period.
The KKI 2025 event, running from August 7 to 10, is showcasing the success and potential of MSMEs.
A total of 362 curated businesses — selected in collaboration with eight ministries and government agencies — are participating in the in-person exhibition.
Over 1,100 MSMEs are also displaying their products in a virtual exhibition, including traditional textiles, crafts, coffee, processed foods, and sustainability-focused goods. The exhibition can be accessed via karyakreatifindonesia.co.id.
Warjiyo said BI is targeting significant gains from the event, including increases in business matching, exports, and financing, with an overall goal of boosting total MSME revenue by 65 percent in 2025.
This year’s KKI event also highlights green transition and inclusivity. A special Green Island zone is showcasing circular economy products such as eco-fashion, eco-furniture, and waste-based innovations including Black Soldier Fly (BSF) processing. Public education on sustainability is being supported through tools such as a carbon footprint calculator.
To promote youth involvement and inclusivity in MSME development, the event also features ready-to-wear fashion collections designed with young regional designers, as well as the “Langgam Dua Hati” fashion show involving persons with disabilities.
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Translator: Primayanti
Editor: Anton Santoso
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