MSME Legality Transformation To Expand Job Fields

JAKARTA - Deputy Minister of MSMEs, Helvi Moraza, said that the transformation of Micro, Small and Medium Enterprises (MSMEs) from the informal sector to formal has the potential to expand employment.

"With the contribution of labor absorption by MSMEs reaching 97 percent, it is proven that MSMEs are a solid foundation for the nation's economy. However, until now there are still many micro-enterprises in the informal sector," said Helvi, Tuesday, September 16.

According to him, one of the big challenges facing Indonesia is the high unemployment rate. For this reason, a policy instrument update is needed that is able to open up more job opportunities for the community.

As regulated in PP 7/2021, the government is committed to increasing MSME productivity by encouraging the acceleration of the transformation of micro-business from informal to formal.

"The ease and simplification of licensing are the keys in empowering MSMEs, as well as opening up wider business opportunities," said Helvi.

In addition to business transformation, Helvi added, the Micro Business Ease and Protection Festival is also a collaboration event between the government, associations, and the private sector to increase production capacity, expand access to financing, encourage business digitization, and increase market access.

"With the strategic role of MSMEs in employment, the government is trying to build an integrated ecosystem that strengthens the competitiveness of MSMEs," said Deputy Minister Helvi.