Income Journal of Economics Development
Vol. 6 No. 1 (2026): January 2026

MSMEs as a Driving Motor for Decent Work Towards a Sustainable Indonesian Economy

Fhaisa Rayya Zuriani Haryono (Universitas Negeri Surabaya)
Angelika Mariana Sihombing (Universitas Negeri Surabaya)
Indah Prabawati (Universitas Negeri Surabaya)
Firre An Suprapto (Universitas Negeri Surabaya)



Article Info

Publish Date
02 Aug 2026

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in the Indonesian economy because they are able to encourage entrepreneurship, expand job opportunities, and increase productivity. In the labor market, MSMEs are the main source of employment for groups that have limited access to formal employment. This study uses a literature review method with a qualitative descriptive approach to analyze the role of MSMEs as a driver of decent jobs towards a sustainable Indonesian economy. The results of the study show that MSMEs contribute significantly to labor absorption and inclusive economic growth, especially for groups that have limited access to the formal sector. However, the quality of the work produced still faces various challenges, such as low wages, lack of social protection, and suboptimal working conditions. Therefore, policy support, human resource capacity building, and digital transformation are needed to strengthen the role of MSMEs in creating decent jobs and supporting Indonesia's sustainable economy.

Copyrights © 2026






Journal Info

Abbrev

ekonomi

Publisher

Subject

Economics, Econometrics & Finance

Description

Income Journal of Economics Development has p-ISSN000-000 and e-ISSN 3025-3225 published by Pustaka Digital Indonesia, this journal publishes research articles in the field of Economics. This journal publishes research studies using various qualitative and/or quantitative methods and approaches in ...