Indonesia MSME sector targets 60% GDP contribution by 2027

Micro, small, and medium enterprises (MSMEs) remain a cornerstone of Indonesia's economic resilience. The Ministry of MSMEs has set a target for the sector to contribute 60.47 percent to the national GDP by 2027. To support this, the government is implementing the 'Prokesra Produktif' program from 2026 to 2029, aiming to enable 10 million people to work or start businesses through integrated support in training, legality, and digital access.

In the fintech sector, PT Sahabat Mikro Fintek (Samir) has reached a milestone of Rp7.8 trillion in cumulative financing distributed to approximately 5.3 million borrowers over seven years. The company is increasingly focusing its expansion on regions outside of Java, with Sumatra accounting for 16 percent of its cumulative distribution, followed by Sulawesi, Kalimantan, Bali, and Nusa Tenggara. Samir reports a 90-day default rate (TWP90) of approximately 2 percent, which is lower than the industry average of 5 percent.