The Ministry of Micro, Small, and Medium Enterprises (MSMEs) has recently identified logistics costs as a critical challenge hindering the growth and development of MSMEs. The Assistant Deputy for Regional Development and MSME Supply Chains at the Ministry, Ali Alkatiri, highlighted that logistics issues have emerged as one of the most pressing obstacles for small and medium-sized businesses. While issues such as capital access, digital literacy, and human resources (HR) remain concerns, the rising cost and complexity of logistics have now become a central hurdle.
At the J&T Connect Preneur Summit held at Swissotel PIK Avenue, North Jakarta, on December 3, 2024, Ali emphasized that logistics problems, along with the need for efficient supply chains, have become more dominant in recent years. He stated, “Logistics and ensuring the supply chain remain significant challenges for MSMEs. These are increasingly critical issues that we must address.”
To tackle these persistent logistics issues, Ali stressed the importance of collaboration across various sectors. He underscored that solving this problem requires synergy and innovation from multiple stakeholders, including government bodies, logistics providers, and MSMEs themselves. Moreover, Ali mentioned that the Ministry could consider revisiting and revising relevant regulations, such as Presidential Regulations No. 16 of 2012 and No. 5 of 2020, as well as other ministerial regulations that affect MSME development.
The goal is to ensure that the logistics framework not only supports MSME growth but also provides sustainable and cost-effective solutions. Ali pointed out that improving logistics requires more than just resolving operational inefficiencies—it also calls for policy adjustments and stronger infrastructure.
In addition to addressing logistics challenges, the Ministry of MSMEs is focusing on integrating sustainability principles, such as the green and blue economies, into MSME development strategies. Ali emphasized that businesses today must adapt to global sustainability demands, ensuring that their practices align with environmental and ethical standards. He stressed that MSMEs must embrace good corporate governance while simultaneously adopting sustainable economic practices to remain competitive in the modern marketplace.
He concluded, “We must not only reexamine regulations but also ensure that MSMEs are prepared to meet the demands of a sustainable economy.” By adopting these practices, MSMEs can secure a more sustainable future, benefiting both the environment and the businesses themselves.