MSMEs and Rural Prosperity: A Study of their Influence in Indonesian Agriculture and Rural Economy

Eka Herissuparman; M.Apuk Ismane; Hasim Ashari1

1

Publication Date: 2024/07/06

Abstract: This research delves into the influence of Micro, Small and Medium Enterprises (MSMEs) on the progression of agriculture and the rural economy in Indonesia. MSMEs hold a pivotal position in the Indonesian economy, significantly contributing to job creation and economic expansion. Despite this, their potential to stimulate agricultural growth and enhance the rural economy remains largely uncharted. The investigation of this study centers on the mutual relationship between MSMEs and the agricultural sector. It emphasizes how MSMEs can instigate innovation, augment productivity, and pave the way for rural farmers to access markets. The study also scrutinizes the part MSMEs play in rural development by evaluating their role in boosting income, mitigating poverty, and empowering socio-economic aspects in rural regions. Furthermore, this study identifies the obstacles MSMEs encounter in their contribution to agricultural and rural economic development. These challenges include access to finance, technology, and a complex workforce. The report puts forth policy recommendations to surmount these hurdles and tap into the potential of MSMEs for the advancement of agriculture and rural economic growth in Indonesia. The study enriches the literature on MSMEs, agricultural development, and rural economics. It offers valuable insights for policymakers, practitioners, and researchers who are keen on promoting sustainable development in Indonesia. The findings of this research underscore the necessity of fortifying MSMEs to attain agricultural development and rural economic prosperity in Indonesia.

Keywords: Agricultural, Economy, MSMEs, Rural Development, Indonesia.

DOI: https://doi.org/10.38124/ijisrt/IJISRT24JUN1227

PDF: https://ijirst.demo4.arinfotech.co/assets/upload/files/IJISRT24JUN1227.pdf

REFERENCES

  1. Tambunan, T. T. (2023). The Potential Role of MSMEs in Achieving SDGs in Indonesia. In Role of Micro, Small and Medium Enterprises in Achieving SDGs: Perspectives from Emerging Economies (pp. 39-72). Singapore: Springer Nature Singapore.
  2. Herfanni, H., & Ratnasih, C. (2023, July). The Role Of Cooperations In The Development Of MSMEs In Indonesia. In Proceedings of the 3rd International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2023, 6 May 2023, Salatiga, Central Java, Indonesia.
  3. Soetjipto, B. E., Handayati, P., & Hanurawan, F. (2023). Enhancing MSMEs Performance through Innovation: Evidence from East Java, Indonesia. Journal for ReAttach Therapy and Developmental Diversities, 6(3s), 124-145.
  4. Kompas, A. (2021). com dengan judul" Sri Mulyani Ungkap Kelemahan Tata Kelola Keuangan Papua dan Papua Barat" baca: https://money. kompas. com/read/2021/01/26/174129126/sri-mulyani-ungkap-kelemahan-tata-kelola-keuangan-papua-dan-papua-barat? page= all. Mutia Fauzia Januari.
  5. Risnawaty, H., Napitupulu, S., Sari, H. I., Saiful, S., & Amir, S. Is the External Assistance of MSME a Prominent Way to Achieve Comprehensive Results? A Case Study of DKI Jakarta, Indonesia.
  6. Harsono, B., Napitupulu, H., Napitupulu, S., & Saiful, S. (2024). Qualitative Review and Prospects for Economic Growth of MSMEs at the University of Indonesia.
  7. S. Saiful, Hotma Napitupulu, & Sabar Napitupulu. (2023). Empowering MSMEs in Depok City through Government Support and External Aid. Journal of Advanced Zoology, 44(S3), 1512–1519. https://doi.org/10.17762/jaz.v44iS-3.1895
  8. Khan, M., & Manurung, A. (2024). Driving Sustainable Business Models in Indonesian Emerging Markets: An Empirical Analysis. Finance, Accounting and Business Analysis (FABA), 6(1), 53-63. Retrieved from http://www.faba.bg/index. php/faba/article/view/179
  9. Montes de Oca Munguia, O., Pannell, D. J., & Llewellyn, R. (2021). Understanding the adoption of innovations in agriculture: A review of selected conceptual models. Agronomy, 11(1), 139
  10. Altman, S. A., & Bastian, C. R. (2021). The state of globalization in 2021. Harvard business review, 3, 1-9.
  11. Yanto, W. Empowering Indonesian MSMEs: An Examination of the Pivotal Role of Universities.