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Thursday, 07 October 2021 00:00

Levelling Up Women MSMEs

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The contribution of micro, small, medium enterprises (MSMEs) to the Indonesian Gross Domestic Product (GDP) is very great. The Ministry of Cooperatives and Micro Small Medium Enterprises recorded, the MSMEs contribution to GDP in 2019 was 60.51% from total state revenue. Quoted from npar.ac.id (1/6), from 99.99% of the MSMEs, 50% of them are managed by women.

Based on data from International Finance Corporation (IFC), as quoted from katadata.co.id (11/8/2020), at least 43% formal MSMEs in Indonesia were owned by women. At a glance, the number is quite significant. However, if measured by scale, the businesses managed by women are still in micro-scale. IFC research showed that 52.9% women MSMEs are on a micro scale. There are only a very few women MSMEs in or developing into small and medium scale. 

Most of the women MSMEs are still struggling in developing their businesses. Their businesses are not only affected by basic issues faced by any business people, such as capital, but also women's double responsibility: doing business and household chores.

The Indonesian government keeps encouraging women MSMEs to not only handle the micro-scaled ones, but also to develop them into small and medium level; one of which is funding.

Coordinating Minister for Economy, Airlangga Hartarto as quoted by Antara (6/10) said that one of the government's supports for MSMEs owned by women is the Super Micro People's Business Loan (KUR) targeting housewives who are doing business. The other way is MSMEs digitalization.

The effort to develop the women MSMEs certainly needs cooperation and coordination with many sides. The most important thing is giving various training classes for women MSMEs, such as e-commerce, digital marketing, promotion, and financial management.

With good cooperation and coordination, the MSMEs managed by women are expected to level up.

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