A Portrait of the Micro and Small Industry Map in Indonesia: Identifying Growth Centers and Regional Disparities

Abstract

This research aims to map the micro and small industry (MSI) landscape in Indonesia by identifying growth centers and existing regional disparities. MSIs are a crucial pillar of the national economy, but their uneven distribution often creates economic disparities between regions. Using a descriptive quantitative method and 2023 BPS data from 34 provinces, the study analyzed distribution patterns, dominant industry types, growth factors, and obstacles. Results show significant spatial dominance of MSIs on Java, particularly in provinces with advanced infrastructure and better market access. Significant regional disparities were found in eastern Indonesia, where MSI growth is hampered by limited capital, technology access, and inadequate policy support. Targeted, region-specific policy interventions are essential to promote more equitable economic growth, including improving access to micro-financing, relevant skills training, and developing supporting infrastructure in lagging regions.