Over the past few years, microbusinesses have been recognized as having an important role in improving the country's economy. Therefore, government institutions are expected to pay greater attention to microbusinesses. To assist the government and other stakeholders, SMERU and the Ministry for Women’s Empowerment conducted a study to map assistance provided by various institutions to strengthen microbusinesses, including those owned by women. In this edition, we present some of the findings from the study, particularly the characteristics of microbusinesses, their potential to absorb more workers, and their role in poverty reduction. Other issues discussed include how microbusinesses differ from small businesses and the difficulty in determining the number of microbusinesses in Indonesia.

The Director of the Bina Swadaya Foundation, Bambang Ismawan, one of our guest writers, contributed an article entitled "The People's Economy and the Role of Microfinance." Mr. Ismawan argues that attention should be focused on the people's economy because the majority of businesses in Indonesia fall into this sector. He also points out that microfinance institutions have an important role in providing capital assistance for microbusinesses. Sulikanti Agusni, Assistant to the Deputy for Household Economic Affairs at the State Ministry for Women's Empowerment, also contributed an article entitled "Microbusinesses as a Way to Improve the Household Economy." She emphasizes the important role of microbusinesses in enabling the lower class to survive and why
many women get involved in microbusinesses.