The Role of Small and Medium Enterprises (SMEs) in Supporting the People’s Economy in Indonesia

The role of MSMEs in supporting the people’s economy in Indonesia. Study adopted a systematic literature review with data obtained from journals and research articles from 2015-2024. The data source platform used in this study is from Scopus. Evidence from empirical works reviewed showed that that micro, small, and medium enterprises (MSMEs) play a very important role in supporting the people’s economy in Indonesia, with a contribution of around 60.5% to the gross domestic product (GDP) and absorbing almost 97% of the total national workforce. As the main driver of the local economy, MSMEs not only create jobs but also function as a social safety net that helps improve people’s welfare, especially in rural areas. In addition, MSMEs contribute to increasing the country’s foreign exchange through the export of quality local products. To achieve equitable and sustainable prosperity, people’s economic policies should aim to empower society through fair access to resources, strengthen small and medium enterprises (MSMEs), and encourage active participation of the people in economic decision making.