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Wednesday, 25 May 2022 12:34

Indonesia discusses MSME challenges at 2nd DWG side event

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The Ministry of National Development Planning (Bappenas) held the 2nd Development Working Group (DWG) side event to discuss ways to increase the productivity and competitiveness of micro, small, and medium enterprises (MSMEs) and informal sectors.

The discussion was aimed at helping the MSME and informal sector to recover from the impact of the pandemic.

"The Indonesian government has prioritized the principles of sustainability in each of its economic development plans by implementing co-creation and inclusivity measures to ensure no one is left behind,” expert staff to the Minister for Social Welfare and Poverty Reduction at Bappenas, Vivi Yulaswati, said on Monday (May 23, 2022), according to a press release received here.

The DWG is one of the working groups of Indonesia's G20 Presidency, which aims to discuss developmental issues in developing countries, least developed countries (LDC), and island countries (Small Island Developing States/SIDS).

The side event was held in partnership with the Islamic Development Bank (IsDB) and United Nations Development Programme (UNDP).

According to Yulaswati, Indonesia is maintaining a sustainable approach in all development and growth schemes, which is also crucial for ensuring the effectiveness of development.

The G20 DWG side event was opened by the director for multilateral funding at Bappenas and co-chair of the DWG, Raden Siliwanti, who highlighted the importance of strengthening Indonesia’s MSMEs for bringing about economic recovery.

"Strengthening MSMEs is one of the DWG’s priority issues due to the fact that MSMEs have become the main drivers of developing nations’ economies, including ours. (Through this event) We aim to illustrate a lesson learned from the COVID-19 crisis on how responsive policy intervention can actively support MSMEs going forward,” Siliwanti said.

In order for MSMEs to develop and grow, it is important to consider factors such as supportive policies, government interventions, systemic reorganization, and digital transformation.


According to director for small and medium enterprises and cooperatives development at Bappenas, Ahmad Dading Gunadi, Indonesia’s MSME sector has been beset with several fundamental challenges despite MSMEs making up a sizable chunk of the national business landscape, even before the COVID-19 pandemic.

“All of these problems the government has either addressed or will address going forward. We have a goal that within five years, beginning from 2021, all of these issues will be solved. And some already have. For one, the Ministry of Cooperatives and Small and Medium Enterprises distributed credit subsidies, tax relaxations, and (undertook) credit restructuring of MSMEs affected by the COVID-19 pandemic in 2021,” Dading informed.

The 2nd DWG Side Event was divided into two sessions that discussed ways to strengthen and develop MSMEs as well as financial issues.

As the focal point for the DWG, Bappenas organized the 1st DWG Meeting in Jakarta on February 24–25 and the 2nd DWG Meeting in Yogyakarta on May 23–24.

The 3rd DWG meeting will take place in Bali from August 9 to 11 this year. The Indonesian G20 Presidency will also hold the G20 Development Ministerial Meeting in Belitung from September 7 to 9.(Antaranews)

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