North Sumatra Governor Banks on 1.4 Million SMEs for 7.1% Economic Growth Target

North Sumatra Governor Bobby Nasution emphasized the critical role of micro, small, and medium enterprises (UMKM) in propelling the region's economy. He stated that these businesses are key to achieving the province's economic growth target of 6.7 to 7.1 percent for the year, aligning with the national goal of eight percent.

Nasution highlighted the Karya Kreatif Sumatera Utara (KKSU) 2026 event as a crucial initiative to bolster UMKM competitiveness. The event aims to help these businesses access broader markets and increase their economic contribution, especially during a period of global economic uncertainty. The government seeks to leverage such events to stimulate the private sector and maximize domestic potential, positioning UMKM as accelerators of economic growth.

"We must mobilize the private sector and optimize domestic potential, especially UMKM players," Nasution stated, underscoring the need to balance budget adjustments and global economic dynamics. He believes North Sumatra's UMKM products, particularly in textiles and culinary sectors, possess high competitiveness. The main challenge, he noted, is enhancing product quality and marketing to penetrate wider markets and increase added value.

Data from the North Sumatra UMKM Cooperative and Small Business Agency shows around 1.4 million UMKM units in the province as of 2025, with a 4.1 percent entrepreneurship ratio, a figure that has steadily increased. Nasution also aims to shift UMKM marketing orientation from direct consumer sales to integrating into industrial supply chains and attracting investors through business-to-business schemes.