TINJAUAN LITERATUR PERAN UMKM DALAM PEREKONOMIAN INDONESIA

Abstract

 The role of Micro, Small, and Medium Enterprises (MSMEs) in the Indonesian economy has become a crucial focus for the government, academics, and economic practitioners. MSMEs not only contribute significantly to national economic growth but also serve as a major source of job creation, community empowerment, and poverty alleviation. This review article reviews the literature related to the opportunities, challenges, and strategies for MSME development in Indonesia, emphasizing the sector's role in supporting economic equality, product innovation, exports, and digital technology adoption. The method used is a qualitative descriptive literature study, with data collected from primary and secondary sources, including government documents, scientific journals, and academic publications between 2015 and 2025. The analysis was conducted descriptively and analytically through content analysis to extract information regarding MSME contributions, success factors, obstacles, and development strategies. The results of the study indicate that MSMEs have a broad contribution to GDP, job creation, global market penetration, as well as socio-economic empowerment and local cultural preservation. However, MSMEs face various obstacles such as limited capital, market access, managerial capacity, digital literacy, and challenges in optimizing information technology. The government has implemented various strategic initiatives, including management training, business guidance, financing, regulatory simplification, and digitalization support, to improve the competitiveness of MSMEs. These findings confirm that sustainable MSME development requires synergy between businesses, the government, academics, and the business community to create an ecosystem conducive to inclusive national economic growth