Why Indonesian SMEs Matter for U.S. Investors | Asia Forward | Episode 7

Indonesia’s micro, small and medium enterprises, or MSMEs, serve as the backbone of the country’s economy, accounting for the vast majority of businesses and jobs. But beyond the numbers, what makes Indonesian SMEs stand out, and why do they matter for U.S. investors?In this episode of Asia Forward, host Ledy Simarmata speaks with Lishia Erza Budiman, committee chair for SME capacity building and inclusive economy at the Indonesian Employers Association (APINDO). They discuss how Indonesia’s SMEs are shaping the country’s economic future and where the opportunities lie for global business.From their role in the digital economy to limited integration into global supply chains, the conversation explores both the strengths and the challenges facing the sector. They also examine the role of women entrepreneurs, how sustainability and ESG considerations are influencing SMEs, and what artificial intelligence could mean for small businesses in Indonesia.The episode also looks at how growth is being defined, including the contrast between high-growth startups, often referred to as “unicorns,” and more sustainable, profit-driven businesses, sometimes described as “zebras.”As interest from U.S. companies grows, where are the entry points, and what should investors understand before engaging with this market? The episode also looks ahead to how Indonesia’s SMEs could evolve over the next decade and what that means for the broader U.S.-Southeast Asia economic relationship.