The government's support for the development of micro, small and medium enterprisesUMKM) can be seen in Government Regulation (PP) Number 7 of 2021 concerning the Ease, Protection and Empowerment of Cooperatives and UMKM. The regulation states that 30% of public facilities must be filled as UMKM spaces. Almost 5 years after the regulation was released, UMKM hope that the regulation can be truly enforced.
Secretary General of the Indonesian UMKM Association (Akumindo) Edy Misero believes that the government's policy requiring public facility managers to provide 30% of space for UMKM players is a positive step.
According to him, the regulation shows the state's attention to small businesses so that they have space to sell in various public places such as stations, airports, and rest areas.
"We should appreciate the government's decision to provide space for UMKM . This means that the government thinks that UMKM must be given space, there must be a place for them to sell," he said when contacted on Friday (31/10/2025).
However, Edy said that the implementation of the regulation has not run optimally in the field. Some public facility managers, he said, have not prepared spaces for UMKM players, while in other places high rental costs are the main obstacle.
Some managers are still commercially oriented so that the rental prices offered are difficult to reach by small businesses. "If the space is expensive, we might end up renting it," he said.
Edy also highlighted the provision limiting the rental fee to a maximum of 30% of the commercial rate stated in PP 7/2021. The regulation is often ineffective because the basic price of rent is often increased first by the manager before applying the discount.
Edy pointed out that if the commercial tariff is increased from Rp1 million to Rp3 million, then the 30% cut no longer provides significant relief for UMKM. This condition makes it difficult for many small businesses to market their products in public spaces.
Edy revealed that the implementation of this policy is different in each location. At a number of airports, business space is mostly occupied by upper-middle class businesses or big brands, while UMKM have difficulty competing due to limited capital and high rental prices.
In contrast, in some rest areas or terminals, managers have started to provide special areas for local UMKM players. Edy hopes that this kind of practice can be expanded so that business opportunities for UMKM players are more evenly distributed.
Edy emphasized the importance of concrete support from the government and public facility managers for UMKM. He suggested that some business spaces be provided at a more affordable rate, which could even be part of corporate social responsibility.
"If the UMKM collapse, Indonesia will also collapse," he said.
According to him, if this policy is implemented consistently, the impact can increase economic activity in the region while opening up more jobs for the surrounding community.
Contacted separately, Professor of Economics at the Gadjah Mada University Vocational School Mudrajad Kuncoro, assessed that the policy of providing 30% of public space for UMKM players can help expand market access and strengthen small business activities.
Many UMKM players still face difficulties in marketing their products and obtaining raw materials, so the presence of business spaces in public facilities can be a means to bring them directly to consumers.
However, Mudrajad assessed that the implementation of the policy has not fully favored small businesses. He said that not all local governments, ministries, or managers of public facilities make it easy for UMKM to sell in strategic spaces such as airports or transportation centers. High rental prices, according to him, make it difficult for small businesses to compete with medium and large companies.
Partisanship to UMKM, according to him, is not enough to be realized through regulations alone, but also through real support from large businesses. "Use CSR funds so that big businesses are also UMKM, don't just give UMKM seminars," he said.
According to him, providing some business spaces at low or no cost will help small businesses survive and contribute to the regional economy.
Mudrajad added that UMKM have an important role in maintaining the balance of the national economy because most of Indonesia's labor force is still in the informal sector. This sector is often a place of survival for those affected by layoffs in the formal industry. "UMKM are the savior of our economy when a wave of layoffs occurs everywhere," he said.
Reaffirmed
Coordinating Minister for Community Empowerment A. Muhaimin Iskandar emphasized that all public facility managers must provide business space for Micro, Small, and Medium EnterprisesUMKM). He said at least 30% of the total area of public facilities must be allocated to UMKM and creative economy players.
"PP No. 7/2021 states that every public facility, including airports, terminals, ports, and rest areas, must provide 30% of space for UMKM and the creative economy. It must be implemented," Muhaimin said in Semarang, Wednesday (29/10/2025).
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This provision is part of the government's efforts to provide convenience, protection, and empowerment for cooperatives and UMKM. The same regulation also mentions the limitation of rental fees for business space in public facilities, which is a maximum of 30% of the commercial rate. The government hopes that this policy will be an affirmative step to expand business access and strengthen the position of UMKM in public spaces.
The government plans to conduct unannounced inspections to ensure that the provisions are actually implemented. Muhaimin emphasized that he will take action against managers who do not fulfill the obligation to provide space for UMKM. He reminded all managers to immediately implement the regulation before the review is carried out.
According to Cak Imin, the implementation of this policy is an important step in building an inclusive business ecosystem and strengthening local economic competitiveness. The presence of UMKM in public spaces will open up new business opportunities while expanding market access for creative economic actors.
According to data from the Ministry of Cooperatives and SMEs, the UMKM sector contributes around 60.3% to the national Gross Domestic Product (GDP) and absorbs around 97% of the workforce. Data from the Central Bureau of Statistics shows that the number of business units will reach more than 64 million by 2025, with a contribution to national exports of around 15.7%.
