LPEM FEB UI and APF Canada Launch First Workshop Series to Strengthen MSMEs for Inclusive Growth

LPEM FEB UI and APF Canada Launch First Workshop Series to Strengthen MSMEs for Inclusive Growth

 

Jakarta, 17 September 2025 – Institute for Economic and Social Research Faculty Economics and Business Universitas Indonesia (LPEM FEB UI) in cooperation with the Asia Pacific Foundation of Canada (APF Canada), held their first workshop series on MSME Inclusive Growth at Aryaduta Hotel, Menteng. The 54 participants included govenrment agencies, embassy of canada executives, associations, e-commerce sites along with standardization organization and MSME circles to explore how MSMEs can be empowered through digitalization, formalization, regulatory compliance for better ease of doing business in the country as well as their access to wider markets.

The workshop consisted of three sessions, the first one presenting Muhammad Emil Silvan from Bukalapak discussing digitization and e-commerce integration for MSMEs. The second breakout session, which was on MSME formalization, regulatory and tax ease facilitation, was facilitated by D. Rizky Novihamzah from the Directorate of Business Empowerment and Deputy for Investment Climate Development at the Ministry Of Investment (BKPM). In the last session of Certification, Standards and Market Access for MSMEs: Export Clinic was presented by Abd Gofur Ahmad from National Standard Agency (BSN) and Doddy Akhmadsyah Matondang as CEO of SMESCO Indonesia presentation.

Mohamad Dian Revindo, Associate Director for Education and Training at LPEM FEB UI, formally opened the workshop, emphasizing that Indonesia’s objective of targeting 8% growth in GDP must be accomplished through an inclusive and sustainable strategy. He reinforced the significance of integrating MSMEs into the formal supply chain, expanding financial access, and establishing gender-responsive policies to ensure growth not simply accelerated but also has an equitable impact. He continued on clarifying that this workshop was designed to convert these priorities into actionable insights, resulting in a policy brief that will provide more than evidence-based information but also practical technical help for establishing MSME policy and implementation competencies.

Adding Canada’s perspective, Sue Wiebe, First Secretary of Development at the Embassy of Canada to Indonesia and Timor-Leste, delivered the opening remarks, highlighting the shared challenges and opportunities in strengthening MSMEs. Sue noted that MSME are the backbone of Indonesia’s economy, contributing significantly to GDP and employing the majority workforce. Sue also highlighted that both Indonesia and Canada face common challenges in empowering MSMEs. Including limited supply chain integration, restricted access to finance, and underdeveloped standards and certification. She reaffirmed Canada’s commitment through APF Canada to addressing these gaps, emphasizing that over the past decade Canada has advanced programs such as innovation hubs, export readiness training, and scale-up initiatives that enable MSMEs to diversify, strengthen their local presence, and expand to the global market. 

Representing the Ministry of Cooperatives and MSMEs of Indonesia, Yulius, Expert Staff for Startups and Digital Economy, emphasized that integration is crucial for MSMEs to advance, given their contribution of over 60% to GDP and 95% to employment. Yulius pointed out that although women represent 64% of MSMEs, they remain to encounter obstacles in financial access and management. The ministry is implementing initiatives such as the LAKSMI Program, the SAPA UMKM digital platform, and the expansion of People’s Business Credit (KUR) to address these issues. Yulius reaffirmed that MSME must continuously improve quality, competitiveness, and formalization through measures such as business integration and certification- to ensure sustainability and deeper integration into modern supply chains. 

In the first session, Emil Silvan from Bukalapak presented how Bukalapak has shifted from an e-commerce platform to a B2B model that enables MSMEs, especially small retailers and warungs, to access digital and financial services. Through initiatives such as Mitra Bukalapak and the Juwara community, MSMEs supported over 42 digital products, bookkeeping and business management training, and partnerships with banks and FMCGs. Emil emphasizes that empowering traditional retailers with digital tools reduces inefficiencies and strengthens their resilience, especially in rural areas. 

The second session, led by the Ministry of Investment (BKPM), highlighted MSME empowerment as a national objective. The government emphasized the significance of tax simplification, including a final tax rate of 0.5 percent for MSMEs with yearly income under IDR 4.8 billion, prolonged until 2029, and formalization through the Business Identification Number (NIB). Initiatives like export coaching and matchmaking, designed to connect MSMEs with buyers while facilitating their participation in international events, were also highlighted throughout the discussion.

The third session featured the National Standardization Agency (BSN) and SMESCO, who underlined the critical role of certification (SNI, Halal, ISO, GMP) in building product credibility and competitiveness. SMESCO demonstrated how it supports MSMEs with market intelligence, distribution partnership, and incubation programs  that enhance managerials and marketing skills. The session concluded with an Export clinic, where MSMEs received tailored advice on overcoming barriers to global trade, There cases were discussed: a fisheries entrepreneur seeking to stabilize supply chain for export, a craft producer exploring licensing and  halal certification for pearl accessories, and food entrepreneur addressing challenges in obtaining hala certification for cooking. These practical sessions highlighted the real-world obstacle and solution, reaffirming the need for collaboration to help MSMEs expand into international markets. 

The event concluded with an Export Coaching Clinic from Smesco CEO, Mr. Donny Doddy A. Matondang. Three business owners from the baking, handicraft, and fishing industries had the opportunity to receive coaching and business analysis. The final discussion became lively, with the three MSMEs sharing their experiences and challenges in entering the export market. Mr. Donny shared his perspectives on how SMESCO might help MSMEs, especially in growing their export prospects. His remarks also marked the conclusion of the workshop series. 

Dr. Ruth Elisabeth, Team Leader of this project at LPEM FEB UI, emphasized that the first workshop is only the beginning of a comprehensive three-part series. She explained that the upcoming workshop on October 8th will concentrate on expanding MSMEs’ access to finance, while the final session on October 29th will focus on sustainable and green business practices. She further noted that the series is intended to ensure MSMEs are not only integrated into formal supply chains and financial systems, but also better prepared to compete in the global economy in a sustainable and inclusive manner.