Indonesia’s retail sector is optimistic about achieving the country’s target of 8% economic growth by 2025, driven by the resilience of its domestic market and the growing role of small and medium-sized enterprises (UMKM). According to the Coordinating Minister for Economic Affairs, Airlangga Hartarto, UMKM now contributes more than 60% to the country’s GDP and employs nearly 97% of the workforce, making them a vital engine for economic growth.

With over 64 million UMKM units, accounting for 99% of all business entities in Indonesia, the sector's expansion is crucial for reaching the 8% growth target. Government policies and programs have been pivotal in promoting UMKM’s development. The Sampoerna Retail Community (SRC), which now includes 250,000 retail business partners, plays a significant role in advancing the sector. Minister Hartarto emphasized the importance of this program for strengthening the retail landscape in Indonesia.

"With the presence of SRC, all of its partners remain optimistic about the future of Indonesia's economy," said Hartarto during the SRC-The Big Idea Forum on March 17, 2025. He highlighted that the optimism of retail business owners is essential to sustaining economic growth, as 52% of Indonesia’s economy is driven by consumption. Additionally, the country’s vast domestic market and its resilience have attracted substantial foreign investments, further supporting the nation’s economic prospects.

To further support UMKM, the Indonesian government continues to expand access to financing options for entrepreneurs. In 2025, the government plans to launch the Kredit Usaha Rakyat (KUR) program, offering up to IDR 300 trillion in subsidized loans. These funds will primarily target the trade sector, helping businesses scale up and contribute more effectively to the economy.

In addition to financial support, Minister Hartarto stressed the importance of empowering entrepreneurs through training programs. These initiatives will help foster a new generation of business owners capable of navigating the digital landscape. Digitalization, particularly through the use of digital payment systems, will be key in modernizing UMKM operations and increasing their reach.

Minister Hartarto also expressed his appreciation for the signing of a memorandum of understanding between PT SRC Indonesia Sembilan and several prominent companies, including BRI, Bulog, Pos Indonesia, and Telkomsel. This collaboration aims to provide affordable packages for the public ahead of the Idulfitri celebrations, further boosting retail activity during this period.

Looking ahead, Minister Hartarto is confident that Indonesia can meet the 8% economic growth target set for 2025 and beyond. With nearly 4 million retail stores in the country, the potential for growth is vast, and if all these businesses “move up the class,” the ambitious goal of achieving 8% growth by 2028-2029 is within reach.

PHOTO: EKON.GO.ID

This article was created with AI assistance.