The Indonesian Chamber of Commerce and Industry (Kadin) in collaboration with the United States Agency for International Development (USAID) through the Urban Community for Resilient Action (KUAT) program, today held a workshop on the topic of 'Building a Roadmap for Policy Harmonisation and Strategies for Accelerating Economic Recovery of the Resilient and Sustainable Risk-Based MSME Sector' at Wisma PMI Jakarta.
MSMEs are known to have a very large role in the Indonesian economy with a contribution of 61% to GDP, as well as absorbing 97% of the total national workforce. This important strategic significance of the MSME economy encourages Kadin Indonesia and USAID to prepare resilient and sustainable MSMEs by considering disaster risks.
Deputy Chairperson for Social and Disaster Management of Kadin Indonesia, Yani Motik, said that MSMEs are still facing challenges, one of which is the lack of knowledge about business management and potential disasters. "Indonesia is a disaster-prone country, which currently occupies the 2nd highest position based on the World Resource Institute's Global Disaster Risk Index Score 2023. With this geographical situation, MSMEs, which are currently the backbone of the Indonesian economy, have a considerable risk of business failure in the event of a disaster. Therefore, we need to foster MSMEs to become more resilient to disaster challenges for post-disaster business continuity. To that end, Kadin Indonesia together with USAID has developed a special roadmap that prepares MSMEs to effectively deal with post-disaster situations," said Yani.
Yani added that the cooperation between Kadin Indonesia and USAID is Kadin Indonesia's effort as a strategic partner of the government in preparing and empowering MSMEs to be able to develop a strategic plan for accelerating the economic recovery of a resilient, post-disaster risk-based MSME sector and a post-disaster business continuity management system.
In leading the effort to build post-disaster economic resilience, Eny Supartini, Director of Socio-Economic and Natural Resources Recovery at the National Disaster Management Agency (BNPB), initiated creative steps to improve MSME resilience and accelerate post-disaster recovery. "BNPB recognises the urgency of a roadmap in building MSME resilience post-disaster as a crucial step to ensure the business continuity of MSME players. By detailing BNPB's experience, the roadmap is expected to provide a significant boost in improving the effectiveness of the mentoring programmes they implement in disaster-affected areas," Eny added.
Muhammad Firdaus, S.E., M.M, Assistant Deputy for Micro Business Protection and Ease at the Ministry of Cooperatives and SMEs, voiced his commitment to support the preparation of post-disaster MSME resilience "With leadership focused on MSME empowerment, the collaboration between Kadin Indonesia and USAID KUAT brings the spirit of sustainable innovation, creating a resilient business environment in supporting the development of national MSMEs, especially facing the challenges of potential disasters," Firdaus explained.
The collaboration between Kadin Indonesia and USAID KUAT in organising this workshop marks a significant step in supporting economic recovery and strengthening the Micro, Small and Medium Enterprises (MSMEs) sector. The synergy between the private sector and international support through USAID KUAT paves the way for innovation and stronger cooperation, providing opportunities for MSMEs to contribute optimally in facing challenges and realising inclusive economic growth.
National Economy
Regional Economy
National Economy
Regional Economy