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BI calls for ecosystem-based approach to MSME development

Jakarta (ANTARA) – Bank Indonesia (BI) has emphasised the need for an ecosystem-based approach in the development and financing of micro, small, and medium enterprises (MSMEs), expecting large corporations to eventually integrate MSMEs into their supply chains.”We should not look at MSMEs as individual business units, but rather view the entire ecosystem surrounding them,” BI Senior Deputy Governor Destry Damayanti said during the Economic Briefing 2026 here on Friday.Damayanti highlighted the significant potential of women-led MSMEs across various regions, noting that around 64 percent of MSME operators in Indonesia are women.According to her, an ecosystem-based approach, coupled with efforts to improve MSME quality, is expected to promote high-quality and inclusive economic growth.Meanwhile, Head of BI's Macroprudential Policy Department Solikin M. Juhro said the experience of many countries shows that large industries in advanced economies have grown with the support of MSMEs and medium-sized enterprises as part of their supply chains.Juhro cited Japan, Germany, and China as examples of countries driving industrial growth through MSMEs, with Japan and Germany embedding them into manufacturing supply chains, and China supporting them via digital ecosystems and vocational education.According to him, MSMEs are grouped into three categories. The first consists of businesses with strong performance but limited market access.The second category includes developing MSMEs that still need improvements in business management, financial reporting, and other operational aspects. The third comprises MSMEs that remain weak in various areas and therefore require intensive assistance.He added the central bank has introduced several policies to support MSMEs, including macroprudential measures such as the Macroprudential Liquidity Incentive Policy (KLM) and the Macroprudential Inclusive Financing Ratio (RPIM).In addition, BI currently mentors around 3,000 MSMEs, about 20 percent of which are export-oriented.BI also runs the Indonesia Acceleration Intermediation Programme (PINISI), which provides opportunities for businesses on both the demand and supply sides through business matching sessions.