Indonesia and Philippine MSMEs: A Comparison
Antik Suprihanti1*, Jerome D. Soriano2, Andreas Mahendro Kuncoro3, Rika Ernawati4, and Erna Kurniawati5

Department of Agribusiness, Faculty of Agriculture, Universitas Pembangunan Nasional Veteran, Yogyakarta, Indonesia1- Faculty of Business and Management, Tarlac Agricultural University, Philippines2- Department of Technical Industry, Faculty of Industrial Technic, Universitas Pembangunan Nasional Veteran, Yogyakarta Indonesia3

Abstract

This research aimed to describe the profile of micro, small, and medium enterprises (MSMEs) of Indonesia and the Philippines based on variables such as the number and classification of establishments, contribution to the national economy, geographical location, sectoral distribution, problems, challenges, and responsive government policy and support. The data used in this research were the annual reports of MSMEs from the Department/Ministry of Trade, as well as related websites, and surveys. The analytical method used was descriptive. Data showed that MSMEs in both countries have the same role in contributing to the national economy, have similarities in the problems and challenges. However, there were differences in the diversity of products and programs. There extent of the government^s efforts to support MSMEs in market development, especially in developing product quality to penetrate international markets. Differences in government policies reflected differences in strategic priorities in supporting MSMEs to reach high levels. In both countries there are synergies between the government through related departments and universities to encourage MSMEs. However, in Indonesia assistance also comes from companies through Corporate Social Responsibility (CSR) Programs and the focus was on increasing access to export markets by developing the soft skill of the entrepreneurs, as well as financing and digitalization for the MSMEs. Meanwhile, in the Philippines, improving the product quality major comes from the government was initiated to increase domestic and export volume.

Keywords: comparison, descriptive analysis, Indonesia, MSMEs, Philippine

Topic: Agriculture