Indonesia pushes UMKM training and support to boost competitiveness and bank access

In Sleman, Yogyakarta, a three‑day capacity‑building program for micro, small and medium enterprises (UMKM) in Desa Preneur Purwobinangun emphasized shifting from a supply‑side orientation to market‑driven production. Participants received training on product innovation, business contracts, marketing analysis, digital sales, organisational structure, SOPs and feasibility studies, aiming to raise product competitiveness amid declining consumer purchasing power.

At the national level, Deputy Chair of DPR Commission VII Chusnunia Chalim urged the Ministry of UMKM to expand training and create a dedicated task force to help UMKM meet banking requirements. She highlighted that only about 30 % of Indonesian UMKM have bank credit, with total UMKM loan disbursements reaching Rp 1,485 trillion, and that most financing remains concentrated on Java. The proposal calls for budget allocation in the 2027 fiscal plan to enable UMKM to obtain collateral, legal documentation and financial reporting needed for formal credit access.