Antara News·Indonesia·Friday, November 13, 2026 at 03:57 PM UTC

Muhaimin calls for economic reform to strengthen small businesses

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Anita Permata, Raka Adji

Jakarta (ANTARA) - Coordinating Minister for Community Empowerment Muhaimin Iskandar has emphasized the need to reform the economic system to give small businesses a fairer opportunity to grow.

“We have to look at the bigger picture because many mom-and-pop shops, small entrepreneurs, and micro, small, and medium enterprises (MSMEs) are gradually struggling,” Muhaimin said in Jakarta on Friday.

He highlighted the shrinking opportunities for small businesses to compete amid the dominance of modern retail chains, stressing that the issue should not be treated as business as usual.

According to him, existing economic models, including cooperatives and business mentoring programs, need to be evaluated because they have not adequately supported the growth of small-scale businesses.

He said President Prabowo Subianto had initiated a comprehensive evaluation through a national transformation agenda, refocusing development on the mandates of Articles 33 and 34 of the 1945 Constitution.

The reforms are expected to strengthen the state's role in fostering a more equitable economic system.

Muhaimin also encouraged cooperatives operated by Islamic boarding schools, known as pesantren, to become successful models for strengthening the people's economy.

He said cooperatives should be built on open membership, accountable governance, and a shared sense of ownership among their members.

“Membership must be open to ensure accountability, a sense of belonging, and shared responsibility for managing and safeguarding the cooperatives. They must also be profit-oriented so they can grow and thrive,” Muhaimin said.

He expressed hope that pesantren cooperatives would not repeat the shortcomings of previous grassroots business models.

Instead, he stressed that cooperatives should become productive economic players, expand business opportunities, and secure a greater share of the domestic market.

Through these efforts, small businesses, cooperatives, and MSMEs should no longer remain mere spectators in the domestic market but should be able to compete and thrive as major players.

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