The Ministry Of Industry Records The Number Of Workers In The IKM Sector Reaches 12.81 Million People

RDP Commission VII DPR RI together with the Directorate General of IKMA of the Ministry of Industry at the Parliament Complex, Senayan, Jakarta, today. Photo: Theresia Agatha/VOI

JAKARTA - Small and medium industries (IKM) are still the backbone of the national industrial structure, although their contribution to gross domestic product (GDP) has not been optimal with the number of existing business units.

Based on data from the Ministry of Industry (Kemenperin), the number of IKM business units reached 4.43 million or around 99.79 percent of the total national industry of 4.45 million units.

On the other hand, the large number of industries is only 9,528 business units or 0.21 percent of the total available.

This figure shows the great dominance of the IKM sector in the number of business entities in the country.

However, the dominance of this number has not been fully reflected in the macroeconomic contribution.

"So, if the current contribution of the processing industry data is recorded in the third quarter of 2025 at 19.15 percent, there is an IKM contribution of around 3.56 percent," said Director General of Small, Medium and Multifarious Industries at the Ministry of Industry Reni Yanita at the Commission VII DPR RI Hearing Meeting (RDP) at the Parliament Complex, Senayan, Jakarta, Thursday, November 13.

The Ministry of Industry noted that the contribution of small and medium-sized industrial output value to non-oil and gas industries was only 21.01 percent, far behind the large industry which contributed 78.99 percent.

Of this total contribution, the micro and small industry contributed 13.13 percent, while the medium industry contributed 7.88 percent.

Even so, the IKM sector is the largest labor absorber in the industrial sector. Of the total 19.55 million national industrial workers, 12.81 million people or 65.52 percent work in the IKM sector. Meanwhile, the big industry only accommodates 6.74 million workers or around 34.48 percent.

Of the total IKM workforce, small industries dominate with 11.8 million workers, while the medium industry employs around 1 million people.

Adapun menurut klasifikasi Peraturan Pemerintah (PP) Nomor 7 Tahun 2021, industri kecil memiliki modal usaha hingga Rp5 miliar dan hasil penjualan tahunan maksimal Rp15 miliar.

Sementara industri menengah memiliki modal Rp5-10 miliar dengan penjualan tahunan Rp15-50 miliar.

"Kaitannya dengan jumlah tenaga kerja memang umumnya kalau industri kecil jumlah tenaga kerja di bawah 20 orang, kemudian untuk industri menengah di bawah 99 orang," terang Reni.

According to the Government Regulation (PP) Classification Number 7 of 2021, small industries have business capital of up to IDR 5 billion and maximum annual sales proceeds of IDR 15 billion.

Meanwhile, the medium industry has a capital of IDR 5-10 billion with annual sales of IDR 15-50 billion.

"The connection with the number of workers is generally if the industry is small, the number of workers is below 20 people, then for the medium industry below 99 people," explained Reni.