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Indonesia’s MSME and Tourism Ministries Forge Partnership to Boost Local Economies in Tourist Areas

Tourist

Jakarta, August 14, 2025 – The Europe Today: The Ministry of Micro, Small, and Medium Enterprises (MSMEs) and the Ministry of Tourism have signed a memorandum of understanding (MoU) to strengthen MSMEs operating in tourist destinations, aiming to stimulate economic growth and create jobs across Indonesia.

In a statement issued in Jakarta on Wednesday, MSMEs Minister Maman Abdurrahman said the collaboration is designed to generate a broader multiplier effect, including job creation, revitalization of regional economies, and improved competitiveness of MSMEs in tourism areas.

Highlighting the sector’s vast potential, Abdurrahman noted that tourism could drive significant growth for MSMEs, with the potential to create around 25.6 million jobs nationwide.

“We are preparing a road map related to tourism. Almost all regions in Indonesia have tourist attractions, and this sector offers great opportunities for MSME growth,” he said.

The MoU outlines synchronization of tourism and MSME development policies, with a particular focus on over 6,000 tourism villages across the country. Abdurrahman said development efforts in these villages could be prioritized next year.

He expressed hope that the agreement would enhance the performance of tourism players and MSME entrepreneurs while strengthening local economies.

“This step is important and strategic. Collaboration between ministries and agencies is essential to ensure maximum benefits for MSMEs and the communities they serve,” he added.