Digital UMKM Integration Initiated: SAPA UMKM Centralizes Classification, Scoring and Government Facilitation

The Minister of Micro, Small, and Medium Enterprises has issued Regulation No. 2 of 2026 (“Regulation 2/2026”)on Guidelines for the Classification and Development Stages of Micro, Small and Medium Enterprises (Usaha Mikro, Kecil, dan Menengah– “UMKM”). Regulation 2/2026 has now repealed and replaced the various classification and development provisions that were previously set out under Regulation of the Minister of Cooperatives and Small and Medium Enterprises No. 3 of 2021 (“Regulation 3/2021”).[1]