By: Nazar Abdullah*
MSMEs are the main pillars of the Indonesian economy. More than 65 million MSMEs in the country contribute to 61% of the national gross domestic product (GDP). Data shows that until 2023, only 14% of the total MSMEs have been able to penetrate the export market. The government in this case continues to make efforts to optimize the role of MSMEs as drivers of the national economy while increasing the export balance as one of the keys to high-income country status.
Increasing MSME exports is not only about increasing trade volume, but also opening up strategic opportunities to strengthen the foundation of the country’s economy. Local Indonesian products, such as spices, handicrafts, and traditional cuisine, have high selling value in the global market because of their uniqueness and cultural richness.
One concrete effort is the development of a digital ecosystem based on cross-country e-commerce. Platforms such as Master Bagasi have proven themselves as effective bridges between local MSMEs and the global market. Founder and CEO of Master Bagasi, Amir Hamzah, said that the vision of making Indonesia a high-income country by 2045 requires a strong and sustainable export strategy, with MSMEs and the diaspora as key actors in expanding the reach of the international market. By connecting Indonesian products to the diaspora spread across various countries, MSMEs not only gain market access, but also support to improve the quality of their products so that they can compete in the international market.
Head of Business Unit Master Bagasi Mart, Eka Elviana, said that her company has built a digital ecosystem involving 12 million Indonesian diaspora as ambassadors for local products. In addition, support for improving the quality of MSME products continues to be sought so that they can compete in the global supply chain. Eka Elviana emphasized that the diaspora network that is currently being built is the first step in realizing local products that are global, with strategic collaboration involving various institutions, both from within and outside the country.
The role of the government is also a key factor in encouraging MSME exports. The Ministry of Trade, for example, has included strengthening MSME exports as a national priority program. Minister of Trade Budi Santoso said that developing the MSME export ecosystem must include securing the domestic market, expanding the global market, and increasing the capacity of MSMEs through training and mentoring programs. In addition, the government is also developing new export centers outside Java to expand market access for MSMEs throughout Indonesia.
However, government efforts will not be optimal without synergy with the private sector and the diaspora community. The Indonesian diaspora, which numbers around 12 million people, can act as ambassadors for local products in the countries where they live. With the support of technology and innovation, the diaspora can become a strong marketing network to introduce Indonesian MSME products to the international market. In addition, aggregators such as the Indonesian Retail Entrepreneurs Association (Aprindo) can also bridge MSMEs with global trading partners, such as in Korea, Russia, Dubai, and China.
No less important is the increase in capacity and competitiveness of MSMEs themselves. Training on international quality standards, financial management, and business legality needs to be strengthened so that MSME products not only meet export requirements but are also able to survive in the global market. In addition, MSMEs need to be encouraged to utilize digital technology in developing their businesses, from marketing to logistics management.
The potential for increasing the contribution of MSMEs to national exports is very large. If the MSME export ecosystem can be developed optimally, the contribution of this sector to foreign trade can increase significantly. This will not only strengthen the trade balance, but also open up new jobs, increase state revenues, and drive the wheels of the national economy as a whole.
Increasing MSME exports also has a strategic impact in strengthening Indonesia’s position in the eyes of the world. By introducing quality local products, Indonesia can build an image as an innovative country with rich cultural heritage. This in turn will attract more foreign investment, which will further strengthen the foundation of the national economy.
Amidst global challenges such as tight competition and international market fluctuations, Indonesia needs to continue to innovate and adapt. Cross-sector and cross-country cooperation is the key to opening up new opportunities for MSMEs in the global market. With an integrated strategy and full support from various parties, Indonesia has great potential to realize the vision of becoming a high-income country through optimizing MSME exports.
In closing, the focus on strengthening MSME exports is not only an economic necessity, but also a national responsibility. MSME actors not only need a market, but also support to develop and compete in the global arena. Collaboration between the government, private sector, diaspora, and society is a key element to achieve this goal. With hard work together, we can ensure that MSMEs are not only the backbone of the national economy, but also the main driver towards a brighter future for Indonesia.
*The author is an MSME actor
