Indonesian Festival Aims to Boost Micro-Enterprise Access and Competitiveness

Indonesia's Ministry of Cooperatives and Small, Medium Enterprises (UMKM) is actively working to build a secure, inclusive, and supportive business environment for UMKM entrepreneurs. This initiative is being realized through the "Festival Kemudahan dan Pelindungan Usaha Mikro" (Festival of Ease and Protection for Micro Enterprises), designed to help these businesses grow, compete, and advance.

The festival offers a comprehensive suite of services, including streamlining business licensing, facilitating quality certifications, providing legal protection for businesses and products, and expanding access to financing. Minister of UMKM Maman Abdurrahman emphasized the government's commitment to providing maximum support, encompassing licensing, business assistance, certification, and access to both subsidized (KUR) and non-subsidized loans.

"We strive to provide the best possible service in terms of licensing, business assistance, certification, and access to financing, both KUR and non-KUR. All these services are packaged in the Festival of Ease and Protection for Micro Enterprises," stated Minister Maman Abdurrahman.

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We strive to provide the best possible service in terms of licensing, business assistance, certification, and access to financing, both KUR and non-KUR. All these services are packaged in the Festival of Ease and Protection for Micro Enterprises.

A key focus is addressing the relatively low rate of business legality among UMKM, with approximately 77% currently operating informally. To tackle this, the ministry is enhancing collaboration with various stakeholders, including government agencies, regional governments, banks, and the private sector. The goal is to accelerate the transformation and formalization of micro enterprises, ensuring more entrepreneurs gain legal certainty, business protection, and access to empowerment programs.

Governor of East Kalimantan, Rudy Mas'ud, echoed the sentiment, acknowledging the increasing complexity of challenges facing UMKM. He stressed the need for stronger synergy among all stakeholders to help UMKM "move up a class" – transitioning from informal to legal businesses, from traditional methods to digital technology, and from mere survival to competitive growth. This coordinated effort aims to bolster regional economic growth inclusively and sustainably.

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Therefore, we must continue to encourage UMKM to move up a class. From businesses that do not have legality to legal businesses, from traditional businesses to businesses that utilize digital technology, and from businesses that only survive to businesses that are able to grow and be competitive.