Editor’s Note
- North Sumatra Supports SMEs and Cooperatives
- The Role of SMEs as the Backbone of the Regional Economy
- Growth of Cooperatives and SMEs in North Sumatra
- North Sumatra Focuses on the SME Economy
- Strategic Regional Programs of North Sumatra
- Collaboration between Urban Market UKM and North Sumatra
North Sumatra Supports SMEs and Cooperatives
North Sumatra Governor Muhammad Bobby Afif Nasution will spearhead North Sumatra’s economic development by 2026 by positioning micro, small, and medium-sized enterprises (SMEs) and cooperatives as the key drivers of inclusive and sustainable economic growth.
This initiative aims to increase North Sumatra’s competitiveness. “The competitiveness of SMEs in North Sumatra will continue to grow, in line with market dynamics, economic digitalization, and the strengthening of the business climate under the leadership of Governor Bobby Nasution,” said Naslindo Sirait, head of the KUKM (Cooperatives, Small and Medium-Sized Enterprises) office in North Sumatra.
“Regional development policies that support SMEs and cooperatives are a key factor in transforming the economy into a more resilient and competitive structure,” Naslindo continued.
The role of SMEs as the backbone of the regional economy
Naslindo explained that cooperatives and SMEs in North Sumatra have shown positive results through 2025. The contribution of SMEs to the gross regional product (GRP) amounted to 46.51%, confirming their role as the backbone of the regional economy.
Furthermore, the ratio of cooperative business volume to gross regional product (GRDP) reached 1.84%, well above the target of 0.79%, indicating a significant increase in the size and productivity of cooperatives.
The regional entrepreneurship ratio also rose from the target of 3% to 4.10%. “This development reflects the growth of a new and increasingly strong entrepreneurial class, particularly among the younger generation,” said Naslindo.
Growth of Cooperatives and SMEs in North Sumatra
By 2025, the growth in cooperative business volume will reach 5.44%, exceeding the target of 4.82%, while the percentage of active cooperatives will reach 53.78%. The percentage of cooperatives receiving training support reached 46.18%, of which approximately 90% are Red and White Village/Subdistrict Cooperatives.
The share of SMEs entering into partnerships and exporting reached 1.75%, exceeding the target of 1.66%. This achievement is an early indication of North Sumatra’s increasing focus on a broader market.
North Sumatra focuses on the SME economy
Based on these achievements, the North Sumatra Provincial Office for Cooperatives and SMEs expects competition among SMEs to increase in 2026.
SMEs must not only survive but also adapt by improving product quality and production consistency, strengthening their brand awareness, utilizing digital technology, and expanding their partnerships and market networks.
“The shift in policy focus from creating new businesses to strengthening the quality, scale, and sustainability of existing businesses will be the main focus for strengthening the SME economy in 2026,” said Naslindo.
North Sumatra Strategic Regional Programs
To support the acceleration of regional development goals, the North Sumatra Bureau for Cooperatives and SMEs will implement priority regional programs, flagship activities of regional government agencies, and other supporting activities this year.
The main focus of the regional strategic programs is on developing North Sumatra’s digital market and the virtual gallery for SMEs, as a means of increasing digital market access for high-quality regional SME products.
Key activities of regional government agencies include the North Sumatra Halal Festival, an initiative to strengthen the halal industry ecosystem; the implementation of the #LevelUp Youngpreneur Fast Track program; continued accelerated development of 1,700 young entrepreneurs through a phased training program; the transformation of the Integrated Business Service Center (PLUT) into an SME shopping center; and the development of the Merah Putih Village/Neighborhood Cooperative as a hub for economic activities for village and neighborhood communities.
The Berkah Joint UKM Market in North Sumatra
Meanwhile, other support activities are being strengthened, including supervision, inspections, and monitoring of the health of cooperatives, facilitating the strengthening of cooperative institutions, providing facilities and infrastructure for SMEs, implementing the joint UKM market in Berkah in North Sumatra, organizing events, fairs, and festivals related to the joint UKM market in Berkah in North Sumatra, and developing a business incubation program.
“All these integrated activities directly contribute to increasing cooperative business volume and enhancing the contribution of SMEs to the Gross Regional Product (GRDP) of the province of North Sumatra,” says Naslindo.
Naslindo is optimistic that 2026 will be a period in which the competitiveness of SMEs will be strengthened and consolidated on a more sustainable basis.
SMEs and cooperatives are expected not only to support the regional economy but also to develop into important drivers of competitive, inclusive, and welfare-oriented economic growth in North Sumatra. ***obs
