Antara News·Indonesia·Thursday, November 12, 2026 at 08:36 AM UTC

Govt urges retailers to strengthen MSME partnerships to boost growth

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Bayu Saputra, Raka Adji

Jakarta (ANTARA) - The Indonesian government is urging retail businesses to strengthen partnerships with micro, small, and medium enterprises (MSMEs) to bolster trade supply chains and help achieve national economic growth targets.

"To achieve our growth targets of 5.4 to 5.6 percent in 2026 and 6 percent in 2027, strengthening trade supply chains is an absolute necessity," Coordinating Minister for Economic Affairs Airlangga Hartarto said virtually from Jakarta on Wednesday.

Speaking at the 2026 National Retail Day and National Quality Month Summit, he stated that retailers must be adaptable in their digital transformation, such as adopting omnichannel strategies and utilizing cashless payments.

Airlangga added that retailers need to prioritize sourcing high-quality local products and expand strategic partnerships with MSMEs, backed by supply chain modernization through digital technology.

He affirmed that the government has provided financing support through government credit programs, including the subsidized People's Business Credit (KUR), which can help MSMEs scale up their capacity to enter the modern retail market.

Cumulatively, the disbursement of government credit programs from 2015 through October 27, 2026, reached Rp2,440 trillion (around US$133.7 billion) across 58.1 million loan agreements.

Beyond financing, payment system digitalization has also created opportunities for MSMEs to expand market access and boost transaction efficiency.

In the first half of 2026, transactions via the Quick Response Code Indonesian Standard (QRIS) doubled to 12.55 billion. The payment system is now used by more than 66 million consumers and nearly 45 million merchants, the majority of whom are MSMEs.

Airlangga highlighted that household consumption and trade activity continue to grow, as reflected in the October 2026 Consumer Confidence Index, which remained optimistic at 119.9.

Meanwhile, the September 2026 Real Sales Index rose 1.4 percent year-on-year (YoY) to 221.3.

On the production side, the October 2026 Manufacturing Purchasing Managers' Index reached 54.0, marking its highest level since March 2024.

The government is also working to safeguard public purchasing power through several stimulus programs, including rice aid for 33.2 million beneficiary families and a wage subsidy assistance program of Rp300,000 per month for 13.3 million workers in the fourth quarter of 2026.

"I urge all members of the Indonesian Retail Entrepreneurs Association (APRINDO) and retail business players to continue prioritizing the sourcing of high-quality local products, expanding strategic partnerships with MSMEs, and driving efficient, digital-based supply chain modernization," the minister said.

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