Indonesia’s micro, small, and medium enterprises (MSMEs) sector continues to face significant challenges. Bank Indonesia (BI) has identified three major obstacles that hinder MSMEs from advancing to a higher level, including limited credit realization, low adoption of digital systems, and insufficient readiness to enter international markets.

According to an official post from Instagram account @bank_indonesia, MSME credit distribution declined by 0.64% year-on-year as of November 2025. From a management perspective, only 39.4% of MSMEs have implemented digital systems. In addition, export readiness among MSMEs remains relatively weak, constrained by production capacity, business management capabilities, and market access.

Bank Indonesia noted that many MSMEs aspire to grow further but are often held back by fundamental issues, such as inadequate financial record-keeping, poorly organized business data, and inefficient payment systems. Recognizing these challenges, BI has formulated targeted strategies to help MSMEs scale up and continue contributing meaningfully to the sustainability of the national economy.

Despite these constraints, MSMEs play a crucial role in Indonesia’s economy, contributing around 60% to national output, while their contribution to exports has continued to expand by 15.7%. To support this potential, BI is actively encouraging MSME development through assistance provided by its 46 regional representative offices across the country.

Bank Indonesia reaffirmed its commitment to supporting MSMEs so they can become more competitive, impactful, and sustainable. Various initiatives have been introduced to attract consumers, including the use of market intelligence, product curation and trade promotion, collaboration with stakeholders, and the facilitation of business matching activities.

Furthermore, BI is strengthening MSMEs through product standardization and certification, greater utilization of digital platforms, improved access to banking finance, and closer coordination with relevant ministries and institutions. BI emphasized that resilient MSMEs are a cornerstone of sustainable economic growth and will remain a key focus in building a stronger business ecosystem.