Festival to Formalize and Strengthen MSMEs
The Festival for Micro Business Facilitation and Protection in North Tapanuli, North Sumatra, plays a vital role in strengthening the region’s economy by empowering its micro, small, and medium enterprises (MSMEs). Speaking at the event on Friday, M. Riza Damanik, the Deputy for Micro Enterprises at the Ministry of Cooperatives and MSMEs, explained that the festival’s primary purpose is to invigorate MSMEs, which are crucial contributors to both regional and national economic growth and are key drivers of job creation. He underscored that this positive impact is a direct result of the ministry’s ongoing initiatives to help these micro enterprises formalize their operations, thereby enhancing their productivity and overall competitiveness. The participation of 1,200 MSME players from the Lake Toba vicinity in the festival highlights a significant and growing interest in accessing government services. These services, which are essential for business growth, include direct assistance with securing business permits, obtaining crucial financing, establishing legal entities, and accessing other forms of support that are vital for long-term sustainability.
Bridging the Gap with Comprehensive Government Support
The North Tapanuli event is part of a wider, nationwide series of festivals designed to make government support more accessible to MSME actors. Through these initiatives, micro-enterprises can access a total of 21 different government services, all streamlined and available in one location. These services encompass crucial aspects of formalizing a business, such as legal entity registration under the Directorate General of General Legal Administration, securing halal certification for products, and registering for sole proprietorship. The festival also provides access to various forms of insurance, including business and employment coverage, alongside vital legal aid. Lamhot Sinaga, Deputy Chair of Commission VII of the House of Representatives (DPR RI), praised the Ministry of MSMEs for organizing the festival, stating that the event represents a concrete governmental step towards fostering economic growth, particularly in the North Sumatra region. He emphasized that such initiatives effectively bridge the gap for communities and micro business owners, empowering them to scale up their enterprises and achieve economic advancement.
Nationwide Effort for Sustainable Growth
The festival series, which has previously been held successfully in other regions like Pontianak, West Kalimantan, and Trenggalek District, is a cornerstone of the government’s sustained effort to empower MSMEs. This strategic approach aligns directly with Government Regulation No. 7 of 2021, which outlines comprehensive measures for the facilitation, protection, and empowerment of cooperatives and MSMEs across the nation. By providing a one-stop-shop for essential services, these festivals are empowering MSMEs to transition from informal to formal entities, thereby unlocking new opportunities for financing and market access. This formalization not only enhances their individual productivity and profitability but also allows them to contribute more significantly to the national economy. The government’s continued commitment to this program demonstrates a long-term vision for fostering inclusive and sustainable economic development by building a stronger, more resilient foundation from the ground up, with a focus on its millions of micro business actors.
