Indonesian youth urged to preserve cultural identity in MSME

Deputy Governor of Bank Indonesia Thomas A.M. Djiwandono called on Indonesian youth to safeguard the country’s cultural heritage while advancing micro, small, and medium enterprises (MSMEs). Speaking at the Indonesian Creative Works (KKI) 2026 event in Jakarta on Saturday, Djiwandono emphasized that innovation should not come at the expense of tradition. He highlighted how cultural elements, such as traditional textiles and handicrafts, are essential to maintaining the unique identity of Indonesia’s products in a globally competitive marketplace. Djiwandono acknowledged the efforts of young entrepreneurs to stay current with technological advancements. However, he stressed that these innovations must be rooted in the nation’s rich cultural legacy. “Innovation does not mean abandoning our roots,” he said. “Indonesia's cultural wealth is our strength and what sets us apart amid global competition.” According to him, authentic cultural products possess a distinctiveness that enhances their appeal and commercial viability. He pointed out that MSMEs and the creative economy offer substantial opportunities for young people to contribute meaningfully to economic growth. These sectors have the potential to generate employment and increase the overall value of the national economy. Djiwandono encouraged youth to view these fields not just as avenues for income but as platforms for expressing creativity and contributing to national development. To sustain MSMEs, Djiwandono underscored the importance of regeneration processes that allow businesses to evolve while retaining their core values. This involves fostering collaboration among different stakeholders, including seasoned business leaders and emerging entrepreneurs. Senior figures were advised to provide greater opportunities for younger individuals to participate in decision-making and introduce fresh ideas into business strategies. “Ultimately, the sustainability of Indonesia’s MSMEs depends on our ability to preserve our work through regeneration, strengthen it through innovation, and grow it through entrepreneurship,” Djiwandono stated. He argued that young people are not simply heirs to existing businesses but active innovators capable of expanding the reach and impact of Indonesian products internationally. Collaboration across government agencies was identified as crucial to supporting MSMEs effectively. Djiwandono outlined several areas requiring attention, including enhancing skills through training programs, promoting innovation, integrating digital technologies, improving market access, and ensuring adequate financial resources. Such measures, he suggested, would enable MSMEs to thrive in both domestic and international markets. Furthermore, Djiwandono noted that the success of MSMEs hinges on the synergy between traditional practices and modern approaches. Young entrepreneurs, equipped with technological knowledge and creative thinking, play a vital role in adapting cultural products to contemporary consumer preferences. By leveraging digital tools and innovative marketing techniques, they can elevate the visibility and competitiveness of local goods. The call for preserving cultural identity within the context of MSME development aligns with broader government initiatives aimed at strengthening the creative economy. Recent reports indicate that state policies are increasingly focused on improving human capital and fostering sustainable economic growth. These efforts reflect a strategic shift toward recognizing the dual importance of cultural preservation and entrepreneurial dynamism in driving long-term national progress.