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Indonesia brings 14.7 million micro enterprises into formal economy

The Indonesian government said about 14.7 million informal micro enterprises entered the formal sector in 2025, driven by policies to boost productivity, competitiveness and integration into the national economy.

Workers prepare dim sum at a micro enterprise in South Tangerang, Banten, Indonesia, July 30, 2025. (Photo: ANTARA)
Workers prepare dim sum at a micro enterprise in South Tangerang, Banten, Indonesia, July 30, 2025. (Photo: ANTARA)

Jakarta (VNA) - The Indonesian government said about 14.7 million informal micro enterprises entered the formal sector in 2025, driven by policies to boost productivity, competitiveness and integration into the national economy.

The move reflects policies aimed at strengthening legal status, financing and market access for micro businesses, the Ministry of Micro, Small and Medium Enterprises (MSMEs) has said, as cited by Indonesia's Antara News Agency.

The ministry recorded 6.5 million products receiving halal certification, while more than 1 million micro enterprises obtained Indonesian National Standard (SNI) certification, improving compliance and competitiveness.

State-backed micro lending under the People's Business Credit (KUR) scheme reached 257.9 trillion IDR (about 15.4 billion USD) as of December 11, benefiting 4.38 million borrowers, with 60.8% channelled to productive sectors.

The financing exceeded targets and is expected to generate between 7.7 million and 11.6 million jobs. The ministry said it is also expanding non-KUR financing using land certificates, invoices, purchase orders and intellectual property as collateral.

Market access improved through 2,804 micro enterprises joining business partnerships worth 29 billion IDR in letters of intent, while 12,740 MSMEs participated in the government's Free Nutritious Meals (MBG) programme.

Looking ahead to 2026, the ministry said it will accelerate reforms to help micro enterprises scale up sustainably through stronger legal status, wider productive financing, digital marketing and deeper integration into national supply chains./.

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