No. 28/170/DKom
Young people have significant potential as drivers of innovation, entrepreneurship and regeneration among micro, small and medium enterprises (MSMEs) in Indonesia. A BPS-Statistics Indonesia survey from 2025 showed that Gen Z and Millennials accounted for 49.27% of Indonesia's population of 284.67 million. Their role in the creative economy is also significant, with the two generational cohorts currently accounting for 63% of the workforce. Growing up alongside technology, social media and the digital economy, coupled with pride in local products, has provided a strong foundation for making a significant contribution to MSMEs. Such potential must be strengthened further to support regeneration, particularly in skills- and culture-based sectors, such as traditional textiles and handicrafts. That was the key takeaway delivered by the Deputy Governor of Bank Indonesia, Thomas A.M. Djiwandono, at the Youth Talk entitled 'Creative Works, Empowered Generation: The Role of Young People in Promoting Innovation and Entrepreneurship'. Also in attendance were the Minister of the Creative Economy, Teuku Riefky Harsya, as well as representatives of government ministries/agencies, MSMEs, young entrepreneurs, creative economy players, academia, entrepreneurship communities and students. The event was organised by Bank Indonesia as part of the Karya Kreatif Indonesia (KKI) 2026 series at JICC, Jakarta, on 22nd August 2026.
Deputy Governor Thomas emphasised that MSME sustainability requires a process of regeneration that can connect and connnect the strengths of different generations. Established knowledge, skills and values must be passed down, while younger generations bring fresh perspectives to create added value and expand business opportunities. Young people must also play a greater role, not only as consumers of creative products but also as creators, innovators and new entrepreneurs. “Have the courage to create, continue innovating and maintain Indonesia's identity amid global competition," Deputy Governor Thomas stated.
Minister of the Creative Economy, Teuku Riefky Harsya, stressed the importance of the creative economy as a new engine of national economic growth. Strengthening measures are pursued through eight priority ASTA EKRAF clusters, encompassing ecosystem development, talent, financing, marketing and creative economy diplomacy. Synergy between the Government and Bank Indonesia further supports the agenda through financing, infrastructure, marketing and incentives in accordance with Phase I of the Creative Economy Action Plan 2026-2029. “Through collaboration, more creative economy players in Indonesia can accelerate their growth, from local heroes going national to national champions going global," concluded Minister Riefky.
Concrete measures by Bank Indonesia to promote MSME regeneration include providing broader opportunities for young people to develop capacity, innovation and entrepreneurship. Such efforts are implemented through three pillars of MSME development, namely institutional corporatisation, business capacity enhancement and broader access to finance. Implementation includes the Integrated MSME Entrepreneurship Transformation Program 2026, including Citra Nusa, an Indonesian Traditional Textile Innovation competition involving 580 selected traditional textile MSMEs from across Indonesia, with most participants being young entrepreneurs. Citra Nusa promotes the regeneration of traditional textiles, while enhancing product quality, expanding market access and strengthening supply chain integration. Bank Indonesia also arranged marketplace business management training and expanded domestic and global marketing for 2,156 MSMEs to broaden their market reach. Assistance in implementing green business practices is also being strengthened to enhance MSME competitiveness and sustainability.
The Youth Talk featured Rosita Dewi from the Inclusive and Green Economy and Finance Department of Bank Indonesia and Suhendi, a lecturer at the IPB University School of Business. Rosita Dewi from the Inclusive and Green Economy and Finance Department of Bank Indonesia and Suhendi, a lecturer at the IPB University School of Business. The dialogue across different perspectives further underscored the importance of transformative regeneration in promoting sustainable and competitive MSMEs, while preserving uniqueness, creativity and cultural identity as the strengths of local products. Regeneration is expected to preserve cultural heritage and relevance, while unlocking broader market opportunities for MSMEs.
Bank Indonesia encourages all stakeholders to continue providing opportunities for young people to create, innovate and develop entrepreneurship. In line with the spirit of KKI 2026, Beudaya MeusareSare, Empowered, Together, such synergy is expected to foster more productive and competitive young entrepreneurs who contribute to inclusive and sustainable economic growth in Indonesia.
The spirit of regeneration is also embodied in the 'Rupa Kini' area at KKI 2026, which showcases contemporary MSME products aligned with youth trends, complemented by interactive experiences, such as creative workshops, a photobooth and other engaging activities. Rupa Kini provides a platform to foster pride and appreciation among young people for local creative products, while supporting innovation among Indonesian MSMEs.
Come and join KKI 2026 by visiting the exhibition in Halls A and B of JICC, Jakarta, or online via www.karyakreatifindonesia.co.id. Together, let us support Indonesia's creative MSMEs to recover, become more resilient and competitive, and serve as a source of national pride.
Jakarta, 22nd August 2026
Communication Department
Ramdan Denny Prakoso
Executive Director
