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Journal : Bulletin of Social Studies and Community Development

Macroeconomic Factors Affecting the Growth of Micro and Small Industries in Indonesia Rusliana, Nanang; Jumri, Jumri; Busari, Arfiah; Darma, Dio Caisar; Kusuma, Jati; Nisa, Febriana Khoirun
Bulletin of Social Studies and Community Development Vol 5, No 1 (2026): Bulletin of Social Studies and Community Development
Publisher : Institute of Multidisciplinary Research and Community Service

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61436/bsscd/v5i1.pp01-16

Abstract

Micro and small industries (MSIs) play a crucial role in the national economic structure but are vulnerable to macroeconomic dynamics such as fluctuations in gross domestic product (GDP), inflation, interest rates, exchange rates, exports, unemployment, and proportion of credit and tax incentives. The instability of these economic factors can directly affect the competitiveness and resilience of MSIs, making an in-depth study of their impact highly relevant. This paper navigates the relationship between GDP, tax incentives, inflation, interest rates, exchange rates, unemployment, export value, and the proportion of credit allocated to micro industries, small industries, and MSIs as a whole. Medium-term data from 2013–2023, focusing on Indonesia, were observed using linear regression. Three main findings emerged from the analysis. First, GDP and the proportion of credit had a significant positive effect on micro industries. Second, tax incentives, interest rates, export value, and the proportion of credit had a significant positive effect on small industries. Third, the proportion of credit was the only macroeconomic factor with a significant positive effect on MSIs overall.  The empirical findings suggest that access to finance is a key determinant of MSIs performance, in contrast to other macroeconomic variables, which are often anomalous or contradictory. This reality highlights that limited access to credit critically hampers MSIS investment, growth, and productivity, even under relatively stable macroeconomic conditions. Moreover, in macroeconomic policy scenarios, transmission mechanisms such as inflation or interest rates do not always have an immediate or direct impact on MSIs due to their limited access to formal financial support. Future research is expected to analyse and re-examine the dynamic determinants of MSIs development using more diverse models and data extraction methods. Keywords: micro and small industries, macroeconomics, linear regression, Indonesia.
Co-Authors Abdul Fatah, R. Hozin Ade Komaludin Ade Komaludin ALAM Andi Rustandi Andi Rustandi Andi Rustandi, Andi Aquinaldo Sistanto Putra Arfiah Busari Ari Arisman Armida Salsiah Alisjahbana Asep Muhammad Adam Aso Sukarso Badruzaman, Jajang Budiono Budiono Budiono Budiono Dedi Kusmayadi Dio Caisar Darma Dwi Hastuti Lestari Komarlina Dwi Hastuti Lestari Komarlina Dwi Hastuti LK Dwi Hastuti LK Dyah , Wardhani Dyah Ciptaning Lokiteswara Setya Wardhani Encang Kadarisman Encang Kadarisman Ferdy Firmansyah Fuad Hilmi Galih Nugraha Haikal Zulian Maulana Haikal Zulian Maulana Hanapia, Asep Yusup Husna Arifah Ignatia Bintang Filia Dei Susilo Iis Surgawati Jumri Jumri, Jumri Kadarisman, Encang Kadarisman, Encang Kusuma, Jati Lestari Komarlina, Dwi Hastuti Maulana, Haikal Zulian Meidy H, Moch. Fauzan Muhamad Ferdy Firmansyah Muhamad Ferdy Firmansyah Muhamad Ridho Muhammad Agus Muljanto Muhammad Aliyuddin Neng Yesi, Susanti Nisa, Febriana Khoirun Noven, Sarah Annisa Novi Mela Yuliani Nugraha, Mochammad Hilmi Nuraini, Sri Rahmi Nurhasanah, Rima Paturochman, Iwan Ridwan Putra, Aquinaldo Sistanto Putria Ananda, Viska R. Hozin Abdul Fatah Raden Muhamad Purnagunawan Ridho, Muhamad Rosidah, Euis Rudiana, Dedi Salma Huda Aulia Setyoningrum, Nuk Gurroh Siswahyudianto Siti Sarawati Johar Sri , Sudiarti Sri Rahmi Nuraini sri sudiarti Surgawati, Iis Surgawati, Iis Susilo, Ignatia Bintang Filia Dei Syfa, Raisa Hillia Aini Wardhani, Dyah Ciptaning Lokiteswara Setya Yayat Karyana Yogaswara, Angga Zahra Firdausa Sunarya Zahra Nasution, Fatimah