By: Ivan Adrian )*
The product and service sector is one of the main pillars that opens up great opportunities for the development of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. In the era of increasingly rapid globalization and digitalization, MSMEs can utilize this sector as fertile ground for innovation and development. As a very diverse sector, both in terms of product types and forms of services, the product and service sector provides space for MSMEs to utilize their creativity and innovation in responding to changing market needs.
The rapid growth of the product and service sector provides ample opportunities for MSMEs to create quality products that are relevant to consumer needs. Local products that were previously only known in traditional markets now have the opportunity to go international thanks to technological advances and ease of marketing through e-commerce platforms. MSMEs can create unique products that highlight the richness of local culture, such as handicrafts, regional specialties, or clothing with traditional designs that have their own appeal. The diversity of these products not only opens up economic opportunities but also introduces the richness of Indonesian culture to the international world.
Head of the Public Relations and Media Department of the Central Kalimantan Sharia Economic Community Association (PW MES), Muhammad Ismail, said that MSMEs must build a strong product brand. Consistency in maintaining product quality and customer service is also no less important, as well as understanding market trends and creating relevant marketing content. Then, to attract more customer interest, MSMEs must create attractive product photos and use keywords when promoting online.
Advances in information technology have also made it easier for MSMEs to market their products and services. With digital platforms such as social media, e-commerce, and business applications, MSMEs can now easily reach a wider market without having to spend a lot of money. Smart digital marketing strategies can open up great opportunities for MSMEs to introduce their products and services to a wider consumer base. In fact, MSMEs can run their businesses from home with affordable capital, just with an internet connection and simple devices.
In addition, the many government programs that support the MSME sector are also a determining factor in the development of the product and service sector. Various initiatives launched by the government, such as skills training, providing business capital, and business assistance, provide great opportunities for MSME actors to improve the quality of their products and services. For example, through the People’s Business Credit (KUR) program, MSMEs can gain access to finance with affordable interest rates, so they can increase production capacity or expand their businesses. This program greatly helps MSMEs in overcoming capital constraints which are often the main obstacle to business development.
Meanwhile, Head of Public Relations and Customs Counseling Sub-Directorate, Budi Prasetiyo, said that Customs also participated in the UMKM empowerment program. Because Customs also encourages UMKM players to be export-oriented so that the products produced can be recognized internationally. UMKM is one of the pillars of the national economy because it covers around 99 percent of the total business units in Indonesia. UMKM also contributes to the national gross domestic product (GDP) of up to 60.51 percent and absorbs almost 97 percent of the total workforce in Indonesia.
On the other hand, the development of the product and service sector also opens up opportunities for MSMEs to create new jobs. MSMEs that develop well can absorb workers from various groups, both skilled and those who still need training. This is very important to reduce unemployment and create community welfare, especially in areas that are not yet too developed. By increasing production capacity and diversifying services, MSMEs not only increase their competitiveness but also contribute to creating a more inclusive economy.
The development of the product and service sector amidst the ever-changing global challenges also provides opportunities for MSMEs to innovate and adapt. Existing challenges, such as changes in consumer trends, the need for environmentally friendly products, or even the latest technological developments, can actually be a spur to creativity for MSMEs. For example, many MSMEs have begun to innovate by producing environmentally friendly goods, such as recycled bags or organic products. This not only opens up wider market opportunities, but also increases the added value of the products offered.
The product and service sector has great potential to be a driving force for the development of MSMEs in Indonesia. With the support of technology, government policies, and the creativity of business actors, MSMEs can continue to grow and develop, create quality products and services, and open up wider economic opportunities. Therefore, it is important for all parties to continue to provide attention and support to the MSME sector, so that they can adapt to changing times and become part of the increasingly advanced global economy.
)* The author is a contributor to tigadetik.id