As is known, Micro, Small and Medium Enterprises (MSMEs) play a major role in the Indonesian economy, one of which is in expanding opportunities and employment. In addition, MSMEs also play a role in achieving the global agenda contained in the Sustainable Development Goals (SDGs). Yes, the existence of MSMEs can be said to be a good bright spot in fulfilling the SDGs goals. Where the main point of the SDGs focuses on the view of empowering MSMEs to achieve these sustainable development goals in 2030. What are the SDGs? What are the goals or agendas contained in the SDGs and how can MSMEs play a role in achieving this agenda? Let’s take a look at the full explanation below.
What are the SDGs?
The Sustainable Development Goals (SDGs) is a global agenda adopted by member states of the United Nations (UN) in 2015. The main goal of the SDGs is to achieve sustainable development worldwide by 2030. First of all, it is important to understand that the SDGs include 17 goals consisting of various aspects of sustainability, ranging from poverty alleviation, education, health, to the environment. The SDGs are a global and national commitment to the welfare of society. Quoted from the National Development Planning Agency website, the SDGs also aim to maintain the economic welfare of the community in a sustainable manner and maintain the social life of the community. In addition, this program aims to maintain the quality of the environment and carry out inclusive development and the implementation of governance that can maintain the improvement of the quality of life from generation to generation. Here are the 17 agendas or goals contained in the SDGs and the hope that they can be achieved by 2030:
- No Poverty
- Ending Hunger
- Healthy and Prosperous Life
- Quality Education
- Gender Equality
- Clean Water and Sanitation
- Clean and Affordable Energy
- Decent Work and Economic Growth
- Industry, Innovation, and Infrastructure
- Reducing Inequality
- Sustainable Cities and Communities
- Responsible Consumption and Production
- Climate Change Management
- Marine Ecosystems
- Land Ecosystem
- Peace, Justice, and Strong Institutions
- Partnerships to Achieve Goals
Why can MSMEs support the achievement of SDGs?
In an effort to achieve the SDGs, Indonesian MSMEs play an important role. MSMEs are important contributors to the national Gross Domestic Product (GDP)). According to data from the Central Statistics Agency (BPS), MSMEs contributed 61.07 percent in 2022. MSMEs can be said to be the backbone of the economy. This business is considered to have strong resilience in the midst of the crisis that hit Indonesia. MSMEs have also shown their role in national economic development, such as in the 1998 crisis and the Covid-19 pandemic, where MSMEs were able to rise from the downturn. The rise of MSMEs in Indonesia can be seen when referring to the following factors:
MSMEs Go-Digital
The rapid growth of digital trade is now the momentum for the rise of MSMEs. Indonesian MSMEs will become more digitally active by 2030. Even this year, based on a survey, internet users who have shopped online will reach 88 percent of the total internet users.
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Reporting from Google’s e-Conomy SEA 2020 report, in Indonesia, around 93 percent of respondents stated the use of e-commerce since the Covid-19 pandemic. This is a great opportunity for MSMEs if they are able to utilize e-commerce properly.
Ease of Business Capital Lending
The Ministry of Cooperatives and SMEs has collaborated with the Ministry of Finance to provide Direct Cash Assistance (BLT) to MSMEs to survive and rise amid the pandemic, amounting to Rp1.2 million. In addition, banks have also facilitated access to both business credit and financing for MSMEs. With these factors, MSMEs can be more significantly involved in the Indonesian economy and become a driving force in supporting SDGs goals.
MSMEs and the SDGs Agenda
As explained, MSMEs play a strategic role in a country’s economic development. They contribute significantly to economic growth, create jobs, and reduce socio-economic inequality. In the context of the SDGs, MSMEs can also be powerful agents of change. The following is an explanation of how MSMEs can play a role in achieving the SDGs:
Poverty Reduction
MSMEs can be a source of livelihood for disadvantaged or marginalized groups of people. By providing business and employment opportunities, MSMEs can help reduce poverty and socio-economic inequality.
Welfare Improvement
MSMEs provide opportunities for individuals to develop skills and earn a better income. This can have a positive impact on improving the welfare of individuals and society as a whole.
Improved Access to Education and Health
MSMEs can play a role in expanding access to quality education and welfare. By providing jobs and sources of income, MSMEs can help people to fulfill their basic needs, including decent education and affordable healthcare.
Social Inclusion and Gender Equality
MSMEs can be a tool to achieve social inclusion and gender equality. By empowering women and marginalized communities, MSMEs can provide equal opportunities for everyone to benefit from economic growth.
Innovation and Environmental Management
MSMEs are often places of high innovation and creativity. They can develop new solutions that are environmentally friendly and sustainable. In achieving the environmental protection goals in the SDGs, MSMEs can play an important role by adopting sustainable and environmentally-friendly business practices. It should be noted that the role of MSMEs in achieving the SDGs is not limited to the above aspects. MSMEs can also contribute to environmental protection, sustainability of consumption and production, and other SDGs goals through sustainable and environmentally-friendly business practices, use of renewable energy, and green technology innovation.
Tips for MSMEs to Achieve SDGs
Now, Friend KH already understands how MSMEs are related to the SDGs agenda. Now, for those of you who are also currently running MSMEs, there are several efforts or we can do to help achieve the SDGs, including:
Awareness about SDGs
MSMEs need to understand the concept and goals of the SDGs and the importance of their role in achieving them. By having a good understanding, MSMEs can integrate sustainable principles into their business strategies and operations.
Adoption of Sustainable Business Practices
MSMEs need to implement sustainable business practices, including efficient waste management, use of renewable energy, and reduction of greenhouse gas emissions. In this way, MSMEs can help achieve the environmental goals in the SDGs.
Partnership and Collaboration
MSMEs can form partnerships with non-governmental organizations, research institutions, and governments for support and resources needed to achieve the SDGs. Collaboration with other parties can also improve market access and wider networks.
Fulfill Business Legality
One important aspect for MSMEs to contribute to the achievement of SDGs is to fulfill applicable business legality. Business legality includes licensing, business registration, and fulfillment of taxation requirements and other relevant regulations. Here are some reasons why fulfilling business legality is important for MSMEs:
- Have a better chance of gaining access to finance
- Enhance reputation and trust
- Access to a wider market
- Partnership and networking opportunities
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This is an explanation of the SDGs and the role of MSMEs in realizing them. From this explanation, it can be concluded that MSMEs can not only contribute to the individual economy, but also nationally and globally.
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Well, to further support the progress of MSMEs to be more upscale, it’s good for KH Pals to try the tips above and can do business consultations for free anytime anywhere with Kontrak Hukum. Together with the existing professional experts, Kontrak Hukum can help you to fulfill all the needs of MSMEs including the necessary legality documents. To see the services needed, KH Pals can visit the KH Services – Starting a Business page. Or if you have other questions, don’t hesitate to consult with us at Ask KH or send a Direct Message (DM) to Instagram @kontrakhukum.
