November 24, 2025 | 11:49 am
TEMPO.CO, Jakarta - Deputy Minister of Industry Faisol Riza stated that small and medium-sized enterprises (SMEs) play a crucial role in the backbone of Indonesia's economic growth. The increasing number of new entrepreneurs has a direct impact on the regional economy.
"These efforts are expected to create a more evenly distributed industrial base in various regions, not just centralized in large companies," he said in a written statement on Sunday, November 23, 2025.
He emphasized that entrepreneurship encompasses more than just establishing new businesses; it also involves fostering social and economic changes that encourage independence and productivity. Growing entrepreneurs will create more jobs, increase people's income, and stimulate the regional economy.
According to data from Statistics Indonesia (BPS), Indonesia had around 4.4 million SMEs in 2024, accounting for 99.8 percent of the total national entrepreneurship. However, the entrepreneurship ratio is still at 3.35-3.47 percent as of February 2025.
"This figure needs to be continuously encouraged to achieve the national target of 3.6 percent by 2029, or even earlier," said Faisol.
The Director General of Small, Medium, and Miscellaneous Industry (IKMA) at the Ministry of Industry, Reni Yanita, stated that the effort to increase entrepreneurship involves not only technical training but also building an ecosystem that supports business sustainability. The ministry provides assistance starting from the business incubation process. This includes providing machinery and equipment, product certification, and strengthening financial and digital literacy.
IKM players also receive packaging development services, facilitation related to intellectual property, and support for improving access to markets and financing. "All of these facilities are designed so that new entrepreneurs can not only start businesses, but also grow, develop, and provide sustainable benefits to the surrounding environment," said Reni.
She conveyed that the growth of new entrepreneurs in the industrial sector is part of the national strategy to strengthen the industrial structure at the regional level. The stronger the growing industrial entrepreneurs, the more solid the national supply chain, the broader the job opportunities created, and the greater the innovation that emerges in the regions.
"In this context, Pasuruan Regency has great potential to become one of the important centers for the growth of SMEs," she added.
To encourage the growth of new entrepreneurs at the regional level, the Ministry of Industry organized an event titled "Growth and Development of New Chemical, Clothing, and Handicraft SME Entrepreneurs" in Pasuruan Regency, East Java, on November 13, 2025. The event was attended by 120 SME players from Pasuruan and the surrounding areas.
With a contribution of 23.79 percent to the total industrial output, East Java is the second largest contributor to the national processing industry sector.
At the district level, Pasuruan is known as an area with a dominating industry that contributes 60.65 percent to the regional gross domestic product. The population is around 1.67 million people, with approximately 70 percent in the productive age group. Pasuruan has great potential for industrial entrepreneurship development.
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