Sustainable Development Goals and the Role of MSMEs in Indonesia

Abstract

This descriptive study examines the potential role of micro, small and medium enterprises (MSMEs) in achieving sustainable development goals (SDGs) in Indonesia. By analyzing secondary data it examines the gradual process of the role of MSMEs in achieving various goals such as poverty alleviation (goal 1), zero hunger (goal 2), gender equality (goal 5), and reduced inequalities (goal 10). This paper argues that from an economic perspective, the direct contribution of MSMEs to the achievement of SDGs is to create job and business opportunities, including for married women from poor/low-income households in rural areas, and economic growth. In turn, economic growth, in theory at least, increases the income of the lowly educated workforce, along with increased employment and business opportunities reducing poverty. By reducing the number of poor people, several other goals can also be achieved.

Keywords: MSMEs, SDGs, poverty alleviation, zero hunger, gender equality, good health and well-being