Shanghai Attracts Indonesian SMEs With Funding and Market Access

The Shanghai city government is actively seeking to attract micro, small, and medium-sized enterprises (MSMEs) from foreign nations, specifically targeting businesses from Indonesia, to establish and operate within the metropolitan city.

During a media meeting held by the State Council of China in Shanghai on April 13, 2026, Shen Weihua, the Director General of the Shanghai Municipal Trade Commission, stated that the city has continuously maintained a favorable climate for the development of small and medium-sized enterprises.

Shen indicated that the city government hopes all types of small and medium-sized enterprises can grow in tandem with the city’s own development.

Current Foreign SME Landscape in Shanghai

As of 2025, Shanghai was home to approximately 68,000 foreign small and medium-sized enterprises. The distribution of these businesses is heavily weighted toward specific sectors:

• 91 percent of these enterprises operate within the agricultural sector.
• 10 percent are situated in the manufacturing sector.

Shen noted that while the percentage in manufacturing is smaller, the overall scale and number of companies in that sector remain very large.

According to the Director General, foreign enterprises choose to invest in Shanghai due to several strategic advantages, including advanced transportation access, ease of financing, complete industrial chains, and strong service sectors. He also cited the availability of a large number of highly educated workers and a business environment that meets international standards.

Financial Incentives and Growth Support

To facilitate the growth of these businesses, the Shanghai city government has implemented a mentoring system designed to help superior MSMEs scale into large companies and eventually go public.

Financial support is a core component of this strategy. Shen mentioned that in the previous year, banks disbursed loans totaling 410 billion RMB to support companies.

Shanghai introduced 20 new measures on April 11, 2025, to support SMEs in niche sectors that are critical for industrial development. These measures aim to double the number of such SMEs to approximately 20,000 by the end of the 15th Five-Year Plan period, which spans from 2026 to 2030.

Specific financial rewards outlined in these measures include:

• A one-time 500,000 yuan ($68,472) reward for qualified SMEs in the industrial, internet, software, and information technology services sectors once their annual sales revenue exceeds 20 million yuan for the first time.
• A maximum 500,000 yuan reward for little giant companies that maintain 20-percent annual sales revenue growth for two consecutive years.

The city is also utilizing funds for industrial upgrading, future-oriented initiatives, and three pioneering industries to attract social capital, aiming for a fund cluster valued at at least 100 billion yuan for direct investment in technologically advanced SMEs. A base is being established to nurture 1,000 SMEs qualified for flotation in the stock market.

Indonesia-China Economic Cooperation

The push to attract Indonesian SMEs coincides with broader diplomatic and economic efforts between the two nations. On April 1, 2026, the Indonesia-China Investment Forum was held at the China World Hotel in Beijing.

Initiated by the Asian Trade, Tourism, and Economics Council (ATTEC), the forum focused on business matching and panel discussions to create concrete cooperation in trade, industry, and the development of small and medium enterprises.

This forum has a strategic meaning in strengthening the economic partnership between the two countries, especially in the development of MSMEs as the backbone of the national economy. Business actors must be able to be integrated into the global value chain and be adaptive to digital transformation and technological innovation.

Maman Abdurrahman, Minister of MSME

Djauhari Oratmangun, the Indonesian Ambassador to China and Mongolia, stated that the forum provided a wider space for collaboration and strengthened partnerships oriented toward sustainability and results.