Indonesia Pushes MSMEs, Creative Economy to Reduce Poverty

RRI.CO.ID, Jakarta - Coordinating Minister for Community Empowerment, Muhaimin Iskandar, underscored that micro, small, and medium enterprises (MSMEs) and the creative economy are key sectors in lifting communities out of poverty through a sustainable empowerment approach. He delivered the statement while chairing a Ministerial-Level Meeting attended by Minister of MSMEs Maman Abdurrahman and Minister of Creative Economy Teuku Riefky Harsya at MBloc Space, Jakarta, on Monday, May 4, 2026.

“The government ensures that MSMEs and the creative economy become integral parts of the National Priority Work Program. We want every government initiative to create a real domino effect for small business players and vulnerable communities,” said Muhaimin.

He further stressed the importance of building a competitive, inclusive, and accessible business ecosystem, particularly for middle- and low-income groups.

The Minister of MSMEs reaffirmed the government’s commitment to strengthening micro-enterprises. “As a follow-up to Presidential Instruction No. 8 of 2025, we are focused on ensuring MSME entrepreneurs, especially in poverty pockets, gain access to financing, mentoring, and markets,” Maman Abdurrahman said.

Updating MSME data is being carried out through the integration of the National Socio-Economic Single Data (DTSEN) with the SAPA UMKM platform. Through targeted interventions—such as business identification cards, the People’s Business Credit (KUR) program, and PNM financing schemes—MSMEs are expected to grow and become the backbone of the people’s economy.

Meanwhile, the Minister of Creative Economy highlighted the importance of developing the creative economy sector as a pathway out of poverty, particularly for vulnerable and extremely poor communities, by improving capacity and access to capital.

“The creative economy has great potential to empower communities, including those in vulnerable groups. We are accelerating talent development and financing access so creative players can grow sustainably and become part of the new engine of growth,” he said.

During the meeting, the three ministers also highlighted the success of the Blok M area as a tangible example of MSME and creative economy ecosystem development. The area has successfully transformed into a community-based economic hub, supported by strong transportation connectivity, creative spaces, and dynamic event activities.

The choice of Blok M as the meeting venue also reflects an evidence-based policy approach, where policies are formulated based on best practices in the field. The ministers also conducted site visits and informal dialogues with several tenants to gather direct input from MSME and creative economy players.

With an average of 80,000 visitors per day and daily economic turnover reaching approximately IDR 5 billion, Blok M stands as a best practice model to be replicated through the “1,001 Nights” program—an initiative by the Coordinating Ministry for Community Empowerment to utilize idle assets owned by the government and state-owned enterprises in creating integrated MSME and creative economy hubs.

On the occasion, appreciation was also extended to several managers who have successfully built empowering ecosystems. Through cross-ministerial synergy and area-based ecosystem strengthening, the government remains optimistic that MSMEs and the creative economy will play an increasingly significant role as drivers of national economic growth and as effective instruments for poverty alleviation.