Micro, Small and Medium Enterprises (MSMEs) have a strategic role in the Indonesian economy, with a contribution of 61% to Gross Domestic Product (GDP) and absorbing 97% of the workforce. However, this sector faces significant challenges, including limited access to financing, technology adoption and global markets. This research aims to analyze the contribution of MSMEs to the national economy and evaluate government policies in supporting the growth of this sector. A qualitative descriptive approach was used in this research, with data collection techniques through web data-based trend analysis. Research highlights profit margin as a key indicator for evaluating MSME performance. The research results show that MSMEs play a key role in driving economic growth, creating jobs and supporting financial inclusion, although they still face various obstacles. In conclusion, strengthening the MSME ecosystem through strategic policies, such as the National Economic Recovery Program (PEN), the Job Creation Law, and digitalization, is crucial to increasing the competitiveness of this sector. By overcoming existing challenges, MSMEs can continue to be the main catalyst in economic development and poverty alleviation.