A What is the role of women in improving MSMEs in Indonesia?
Women’s empowerment has an important role in increasing income and the progress of a country, considering that the percentage of women in the population reached 48.4% of the total population in Indonesia.
In 2021, the Central Bureau of Statistics or Badan Pusat Statistik (BPS) found that women manage about 64.5% of the total MSMEs. Following this report, Dalberg from Sasakawa Peace Foundation released another study that stresses the high number of women entrepreneurs in Indonesia, indicating that women fulfill 21% of the role.
Both studies highlight the prominent role of women, especially in the creative economy industry, opening more opportunities for women.
One of the paths to pursue this goal is by establishing a small business in the form of a micro-business. According to Law Number 20 of 2008 concerning Micro, Small, and Medium Enterprises (MSMEs) should have the following criteria:
However, in practice, as many as 80% of MSMEs owned by women do not have access to funding from banks. In general, three problems faced by women managing MSMEs in Indonesia are found, including:
B What is the correlation between women empowerment and the objectives of the G20 Convention?
Gender equality is one of the Sustainable Development Goals (SDGs). During the G20 Summit in Rome held on the 30th of Oct 2021, the President of the Republic of Indonesia conveyed the importance of strengthening MSMEs and women.
One report was that the role of women and MSMEs in financial inclusion is significant, where the financial inclusion of MSMEs and women reaches 81%.
This percentage of inclusion is expected to continue to increase to 91% by 2024. In 2022, Indonesia will host the G20, with the theme “recover together, recover stronger”.
The goal of women’s empowerment or gender equality is slated to be an issue that will be discussed.
Clearly, women empowerment in MSMEs is one of the topics encouraged and supported by Indonesia in the G20 presidency.
Through G20 Empower, one of the working groups in Indonesia’s G20 Presidency aims to accelerate leadership and empower women in the private sector.4 G20 Empower is the only alliance consisting of the government and the private sector that seeks to accelerate the leadership and empowerment of women in G20 countries.
In addition, G20 Empower encourages and supports associations that run MSMEs through various policies. Indonesia’s legal basis, related to women’s empowerment, especially in the field of micro-enterprises, is stated in the Regulation of the Minister of Women’s Empowerment and Child Protection Number 02 of 2016 concerning General Guidelines for Home Industry Development to Improve Family Welfare through Women’s Empowerment (“ROMOWEACP 02/2016”).
This is implemented through the G20 Empower, which is expected to facilitate and prepare the progress of women entrepreneurs of MSMEs and can express and promote the importance of women’s leadership and participation and accelerate gender equality in the business world.5 (IAN/KBA)