The Jakarta Government's Endeavors to Promote The Advancement of Micro, Small, And Medium Firms through an Economic Liberalization Strategy

  • Agus Kurniadi Universitas Negeri Malang
  • Budi Eko Soetjipto Universitas Negeri Malang
Keywords: UMKM (Micro, Small, and Medium Enterprises), Jakarta, Empowerment Strategies, Economic Liberalization, Financial Access

Abstract

This study investigates the evolution, obstacles, and empowerment strategies of Micro, Small, and Medium Enterprises (UMKM) in Jakarta, Indonesia. Micro, small, and medium enterprises (UMKMs) are essential to Indonesia's economy, employing a substantial segment of the workforce and making considerable contributions to the gross domestic product. Despite their significance, UMKMs in Jakarta encounter various structural obstacles, such as restricted access to finance, inadequate managerial competencies, minimal technical integration, and insufficient market penetration. The research utilizes a qualitative methodology, integrating interviews, field observations, and the examination of secondary data from governmental publications and economic statistics. The findings indicate that although UMKMs demonstrate resilience and adaptability to economic fluctuations, they frequently function informally, without sufficient financial documentation, and possess a poor comprehension of digital platforms that could enhance their market reach. Government initiatives designed to empower UMKMs have had notable success, especially in delivering training and restricted financial support. However, bureaucratic inefficiencies, inconsistent policy execution, and inadequate coordination among pertinent authorities frequently compromise the efficacy of these programs. Moreover, most UMKM participants are oblivious to these programs or lack the capability to utilize them. This research advocates for a multi-stakeholder approach that includes the government, commercial sector, academic institutions, and community organizations to tackle these concerns. Improved collaboration can promote capacity development, digital transformation, and enhanced financial inclusion. The study underscores the significance of customized company development services and localized policy frameworks that align with the socio-economic dynamics of Jakarta's varied UMKM sector. The research concludes that the sustainable growth of UMKMs in Jakarta necessitates a comprehensive and inclusive approach. Enhancing institutional support, advancing digital literacy, facilitating access to financing, and promoting innovation are essential for empowering UMKMs to enhance their competitiveness and resilience amidst globalization and technological transformation. Future research should concentrate on the long-term effects of existing empowerment programs and the influence of digital ecosystems on the growth of UMKM

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Published
2025-05-18
How to Cite
Kurniadi, A., & Budi Eko Soetjipto. (2025). The Jakarta Government’s Endeavors to Promote The Advancement of Micro, Small, And Medium Firms through an Economic Liberalization Strategy. International Journal of Economics, Business and Innovation Research, 4(03), 681-700. https://doi.org/10.63922/ijebir.v4i03.1795