Jakarta. The government said Wednesday that the 2025 PRABU Expo could help boost the competitiveness of Indonesia's micro, small, and medium enterprises (MSMEs).

2025 Prabu Expo is short for the 2025 Produk Anak Bangsa Unggulan. At the exhibition, Deputy Minister for MSMEs Helvi Morasa said that adopting technology in the production process was key to improving businesses' competitiveness.

"We must not allow MSMEs to be left behind amidst technological disruption and global competition. Strengthening production technology is a strategic step to ensure local products are competitive and play a larger role in both domestic and international markets," Helvi said.

The 2025 PRABU Expo is a strategic platform to promote the country's leading products, while also expanding business collaboration. It also opens up access to government support for improving production processes and management. 

According to data from the MSME Ministry's Single Data Information System (SIDT), 16.05 million out of 30 million MSMEs still use manual and semi-manual equipment in their production activities.

"If this technology gap is not addressed immediately, MSMEs risk being left behind, especially amidst the influx of cheap imported products," said Helvi.

As a concrete form of support, the government launched the labor-intensive sector microloans with a target disbursement of Rp 20 trillion (around $1.2 billion) by 2025. The funding aims to help MSMEs transform towards modern technology while expanding employment.

Through the Help Me Grow program, the government facilitates assistance with production tools and machinery for selected MSMEs with support from financial institutions, state-owned enterprises, and large industries.

"I appreciate all parties involved. Collaboration between the government, research institutions, banks, and business activists is key to ensuring MSMEs not only grow but also advance through the application of technology," Helvi said.

Strengthening digital marketing is also a crucial focus. Currently, 25 million MSMEs have onboarded e-commerce platforms. Going forward, it is hoped that not only will the number increase, but also the quality and competitiveness of their products.

Rulli Nuryanto, an expert staff member at the Ministry of Cooperatives, stated that the PRABU Expo was not only a promotional event. Rulli said that it was also a symbol of the revival of the people's economy based on collaboration, science, and technology.

BRIN chief Laksana Tri Handoko echoed this sentiment, emphasizing the importance of applied research for MSMEs.

"With technology, simple commodities can be brought to new markets. For example, research on mangoes that are processed for export, or extraction machines that convert commodities into powder or liquid form, making them more efficient from a logistical standpoint," Tri said.

Bank Indonesia's senior deputy governor Destry Damayanti added that strengthening MSMEs must be done through capacity building, expanding market access, digitizing payment systems, and accelerating digital onboarding.

MSME Ministry, Bank Indonesia, and BRIN also inked a memorandum of understanding on MSME development, particularly in financing, research, and production innovation.

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