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Analysis reveals fiscal policy measures enhance MSME productivity in Indonesia, suggesting improved implementation is essential.
Micro, Small, and Medium Enterprises (MSMEs) play an important role in the Indonesian economy as labor absorbers and drivers of the local economy. However, this sector often faces various challenges such as limited access to financing, infrastructure, and policy support. This study aims to analyze the role of fiscal policy in encouraging the growth of MSMEs in Indonesia. The methods used are literature studies and secondary data analysis from various official sources, including government reports and national statistical data. The results of the study indicate that fiscal policy instruments such as tax incentives, subsidies, and state spending for MSME empowerment programs have a positive impact on increasing MSME productivity and competitiveness. However, the effectiveness of these policies is highly dependent on targeted implementation and synergy between related institutions. Therefore, a more inclusive, transparent, and adaptive fiscal policy formulation is needed to encourage sustainable economic growth
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Hidayat et al. (2025) studied this question.
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