Only 1.3 Percent Have Business Identification Numbers, Commission VII Calls for Support for Central Java’s MSMEs

PARLEMENTARIA, Semarang - Commission VII of the Indonesian House of Representatives has highlighted the low rate of Business Identification Number (NIB) ownership among micro, small, and medium-sized enterprises (MSMEs) in Central Java. Of around 4.4 million MSME operators, only 1.3 percent are registered as having an NIB. This is seen as potentially hindering small businesses’ access to financing and various government empowerment programs.

Commission VII member Yoyok Riyo Sudibyo said the government needs to strengthen its support so that millions of MSME operators can obtain business licenses and benefit from the facilities provided. He made the remarks during Commission VII’s working visit to Semarang, Central Java, on Friday (13/11/2026).

“Of the 4.4 million traders and MSME entrepreneurs in Central Java, only 1.3 percent have an NIB. The remaining 97 percent do not. Most of them may only want to borrow Rp5 million, Rp10 million, or up to Rp20 million. The government has already prepared loans of under Rp100 million with no collateral. But in reality, there’s nothing on the ground,” Yoyok said.

In his view, financing facilities are not enough if MSME operators cannot access them. He therefore questioned the effectiveness of government programs when the benefits promised in policy are not felt by people on the ground.

Yoyok said the government needs to provide more practical support, particularly for microbusiness owners who need relatively small amounts of financing. NIB ownership is one aspect that needs attention so business owners can meet the requirements for accessing various government facilities.

Meanwhile, Commission VII Chair Evita Nursanty said the government has implemented a number of programs to promote MSME development at both the national and regional levels. In Central Java, the provincial government runs the Waras Ekonomi program, while the central government has the Sapa UMKM program.

“A great many of our MSMEs still do not have an NIB. But the MSME programs were also presented earlier: the provincial government has been running Waras Ekonomi, and the central government has Sapa UMKM. So all of these efforts are part of ongoing improvements to ensure our MSMEs have NIBs in the future,” Evita said.

She hopes these programs will improve data collection while encouraging more MSME operators to obtain business licenses. With an NIB, businesses are expected to find it easier to access financing and empowerment facilities provided by the government.

In closing, Commission VII called on the central and regional governments to strengthen support and simplify the NIB application process. This is important to ensure that financing facilities are not merely available on paper, but are genuinely accessible to MSME operators, particularly microbusinesses in need of capital to grow. (est/um)