Hello data friends, did you know that every August 12th is also commemorated as National Micro, Small and Medium Enterprises (MSMEs) Day? So, what is the definition of MSMEs?
The criteria for MSMEs in Indonesia are regulated in Government Regulation No. 7 of 2021 concerning the Facilitation, Protection, and Empowerment of Cooperatives and Micro, Small and Medium Enterprises (PP UMKM) articles 35 to 36. For MSMEs that have been established, the type or grouping of MSMEs is based on the criteria for annual sales results. Among them are:
* Micro Businesses have a maximum annual sales result of IDR 2 billion.
* Small Businesses have annual sales results of more than IDR 2 billion, up to a maximum of IDR 15 billion.
* Medium Businesses have annual sales results of more than IDR 15 billion with a maximum nominal of up to IDR 50 billion.
Meanwhile, for MSMEs that are just being established, there are MSME capital criteria which consist of the following:
* Micro Businesses have a maximum business capital of IDR 1 billion excluding land and buildings for business premises.
* Small Businesses have business capital of more than IDR 1 billion with a maximum nominal of up to IDR 5 billion excluding land and buildings for business premises.
* Medium Businesses have business capital of more than IDR 5 billion, a maximum of up to IDR 10 billion excluding land and buildings for business premises.
Indonesian MSMEs are recorded as being able to absorb around 97.00 percent of the workforce, contributing 60.30 percent to Gross Domestic Product (GDP), and contributing 14.40 percent to national exports. The proportion of Indonesian MSMEs' workforce absorption is the largest in ASEAN. Meanwhile, MSMEs in neighboring countries only absorb workers in the range of 35 to 85 percent.
Through its series of annual commemorations, National MSME Day continues to be an important momentum in promoting the strategic role of MSMEs for the Indonesian economy. Support from various parties, including the government, non-governmental organizations, and the private sector, is very important to improve the welfare and progress of MSMEs in the future.
Happy National MSME Day! Keep moving forward, Indonesian MSMEs!
