Indonesian Government Regulation on the Latest Micro, Small and Medium Enterprises Capital Criteria

The criteria for micro, small and medium enterprises, most recently with the issuance of Government Regulation Number 7 of 2021 concerning Ease, Protection, and Empowerment of Cooperatives and Micro, Small, and Medium Enterprises, have changed.

Micro business

Micro Enterprises are productive businesses owned by individuals and/or individual business entities that meet the Micro Business Criteria.

Small business

Small Business is a productive economic business that stands alone, which is carried out by individuals or business entities that are not branches of companies that are owned, or controlled, or become a direct part of Medium Enterprises or large businesses that meet the criteria for Small Businesses.

Medium Enterprise

Medium Enterprises are productive economic businesses that stand alone, which are carried out by individuals or business entities that are not subsidiaries or branches of companies that are owned, controlled, or become a part either directly or directly with Small Businesses or large businesses that meet the criteria for Medium Enterprises.

Micro Business Capital Criteria

The criteria for micro-enterprise capital are as follows:

Micro-enterprises have a business capital of up to a maximum of Rp. 1,000,000,000.00 (one billion rupiah) excluding land and buildings for business premises;
Micro businesses have annual sales of up to a maximum of Rp. 2,000,000,000.00 (two billion rupiahs).

Small Business Capital Criteria

The criteria for small business capital are as follows:

Small businesses have a business capital of more than Rp. 1,000,000,000.00 (one billion rupiah) to a maximum of Rp. 5,000,000,000.00 (five billion rupiah) excluding land and buildings for business premises;
Small businesses have annual sales of more than Rp. 2,000,000,000.00 (two billion rupiahs) up to a maximum of Rp. 15,000,000,000 (fifteen billion rupiahs).

Medium Business Capital Criteria

The criteria for medium-sized business capital are as follows:

Medium-sized businesses have a business capital of more than Rp. 5,000,000,000.00 (five billion rupiahs) up to a maximum of Rp. 10,000,000,000.00 (ten billion rupiahs) excluding land and buildings for business premises; and
Medium-sized businesses have annual sales of more than Rp. 15,000,000,000.00 (fifteen billion rupiahs) up to a maximum of Rp. 50,000,000,000.00 (fifty billion rupiahs).

A more complete explanation regarding Government Regulation Number 7 of 2021 concerning Ease, Protection, and Empowerment of Cooperatives and Micro, Small, and Medium Enterprises can be read in article PP Number 7 of 2021 concerning Ease of Business of SMEs.

Hopefully helpful, and thank you.