The Role of Micro, Small, and Medium Enterprises (MSMEs/UMKM) in Promoting Regional Economic Development: A Case Study in Indonesia

Authors

  • Ridhowati Ridhowati Universitas Borobudur
  • Pudji Astuty Universitas Borobudur

DOI:

https://doi.org/10.62007/joumi.v3i2.460

Keywords:

MSMEs, regional economic development, inclusive growth, local innovation, MSME development policy

Abstract

This study examines the role of Micro, Small, and Medium Enterprises (MSMEs) in regional economic development in Indonesia. MSMEs have become the backbone of the national economy with significant contributions to Gross Domestic Product (GDP) and employment creation. Through a qualitative approach with literature studies and interviews with MSME actors in five provinces, this research identifies that MSMEs play roles as local economic drivers, employment absorbers, regional potential developers, and innovation catalysts. Challenges faced include limited access to capital, human resource capacity, market access, and digital infrastructure. The research recommends strengthening the MSME ecosystem through integrated policies, technical assistance, digitalization, and strengthening production-distribution networks to enhance the competitiveness of MSMEs in promoting sustainable regional economic growth.

 

 

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Published

2025-06-30

How to Cite

Ridhowati, R., & Pudji Astuty. (2025). The Role of Micro, Small, and Medium Enterprises (MSMEs/UMKM) in Promoting Regional Economic Development: A Case Study in Indonesia. Jurnal Multidisiplin Indonesia, 3(2). https://doi.org/10.62007/joumi.v3i2.460

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