ABDSI and ILO Develop National Roadmap to Strengthen Indonesia's MSME Development Services

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SEMINYAK, Bali (Joint press release) - Efforts to strengthen the competitiveness of micro, small, and medium enterprises (MSMEs) in Indonesia have gained new momentum through the collaboration between the Association of Indonesian Business Development Services (ABDSI) and the International Labour Organization (ILO). Through a two-day National Seminar and Strategic Workshop in Bali, stakeholders developed a roadmap for the institutional transformation of Business Development Services (BDS) through 2030.

The event, titled "ABDSI Strategic Planning Workshop - Developing the Roadmap Forward," brought together 45 stakeholders, including representatives from ministries and government agencies, development partners, BDS providers, academia, and financial institutions. The forum aimed to produce an initial draft of the ABDSI Institutional Transformation Roadmap 2026-2030 as a strategic framework to strengthen the role of BDS in enhancing MSME competitiveness.

As the backbone of the national economy, MSMEs contribute significantly to job creation and inclusive economic growth. However, MSMEs continue to face various challenges, ranging from digital transformation and green economy demands to limited access to finance. These conditions highlight the need for a more coordinated, professional, and sustainable BDS ecosystem.

"A strong BDS ecosystem and association are essential to translate development goals into tangible results for MSMEs. Amid the challenges of digitalization and increasingly complex markets, the role of BDS is becoming more critical. This workshop builds a shared vision to strengthen ABDSI in empowering MSMEs, creating decent jobs, and driving sustainable growth," said Djauhari Sitorus, Project Manager of Promoting MSME through Improved Access to Financial Services Phase 2 (PROMISE II Impact).

As the main national platform for BDS providers, ABDSI sees this roadmap as a key tool to drive organizational transformation and align the direction of BDS sector development in Indonesia.

"This roadmap represents a collective commitment to become a more credible, effective, and sustainable partner for the government, the private sector, and especially for millions of MSMEs in Indonesia," said Cahyadi Joko Sukmono, Chairperson of ABDSI National Executive Board.

From the government's perspective, the importance of a data-driven approach and ecosystem strengthening was also emphasized.

"Efforts to help MSMEs scale up must begin with improving data to ensure that empowerment programmes are better targeted. Key challenges for MSMEs include limited access to markets and partnerships, access to finance, and technological capacity and standardization, particularly as the majority of our MSMEs are still micro-scale. Therefore, strengthening the ecosystem, including BDS services, is key to enabling MSMEs to grow and become more competitive," said Fitri Rinaldi, Secretary to the Deputy for Medium Enterprises at the Ministry of MSMEs.

Over the two days, the event featured policy dialogues with government representatives, including Bappenas and the Ministry of MSMEs, as well as focus group discussions (FGDs) addressing strategic pillars such as governance, membership development, professional standards, and partnerships. The second day focused on strengthening the capacity of BDS consultants and finalizing the initial draft of the roadmap.

The resulting roadmap is expected to serve as a national reference for strengthening ABDSI's institutional capacity and improving the quality of BDS services, thereby expanding MSMEs' access to finance, markets, and integration into broader value chains.