By: Vedelma Westi *)
The holding of the 2023 ASEAN Summit in Labuan Bajo is able to provide a very wide space for local MSMEs to be able to compete in the global market as a form of Government support for small business actors to continue to grow.
It is common knowledge that Micro, Small and Medium Enterprises (MSMEs) are a sector that dominates most business actors in Indonesia, and recently their numbers have continued to increase so that their Gross Domestic Product (GDP) also continues to skyrocket in number from year to year. Data shows that it only took about 7 years for the total GDP of MSMEs in Indonesia to immediately increase by 2 times, from 2010 to 2017.
It can even be said that more than 99 percent of businesses in Indonesia are in the MSME sector because the total number of units has reached more than 62 million. It is not only the GDP value and the number of business units that continue to increase, but the investment value of MSMEs has also increased very rapidly because if withdrawn from 1999 to 2013 or in about 14 years, the growth has reached 963 percent.
Not only used as merchandise and souvenirs , MSME products have also attracted the attention of ASEAN 2023 participating countries. Products that are superior are artisanal products such as culinary, wellness and also in the realm of fashion. The Minister of Cooperatives and SMEs, Teten Masduki, stated that artisanal products do have an advantage because they are very capable of meeting the interests of the public and the market itself, moreover the products have unique characteristics and are also not mass-produced so that there is an impression of exclusivity attached to them.
It is also not surprising that the MSME sector has an extremely important role in supporting economic growth in the country. One of the reasons for this is because the transaction cycle in MSMEs is fast and their products tend to be directly related to the main needs of the wider community.
By continuing to encourage MSME products at the ASEAN 2023 event, this will certainly be an effective promotional event.
The Ministry of Cooperatives and SMEs itself also directly provides assistance to SMEs from various processes starting from production, packaging to how to do branding. The assistance provided by KemenkopUKM is indeed a very important thing to do in order to be able to maintain the quality of the products produced by the local MSMEs themselves.
Furthermore, not only supporting cultural wealth and art as a source of strength for MSMEs, but the MenkopUKM continues to make breakthroughs by considering MSMEs based on innovation and technology. This is not just a plan, because Teten Masduki emphasized that so far the roadmap already exists and is currently in the preparation stage and is forming collaborations with various related parties.
Meanwhile, the owner of the Komodo Exotic Souvenir Shop, Vincentius Felix, revealed that recently the economy has not been doing well and holding the ASEAN Summit can increase sales of goods thereby boosting the regional economy.
Vincent stated that maybe around 50-60 percent, with the Eid holiday followed by the ASEAN Summit and later there will be school holidays, then there will definitely be a spike in sales specifically in Labuan Bajo. Although he could not mention the amount of turnover his business earned, he believed that holding the 42nd ASEAN Summit in Labuan Bajo would increase sales of regional souvenirs.
Vincentius also hopes that all MSME actors can take advantage of economic opportunities that are encouraged by the holding of meetings attended by a number of ASEAN heads of state/government. The opportunity is so great and the opportunities provided are so great, a number of MSME activists also hope to seize this opportunity.
A number of products that are usually of interest to tourists include woven fabrics typical of Labuan Bajo, various types of coffee from Flores, to culinary delights made from moringa or moringa leaves. Many MSME stores provide special support for the 42nd ASEAN Summit event, namely providing special prices for visiting Summit delegates. In fact, there is a weaver woman who does the process of weaving typical Labuan Bajo cloth at the booth. So that visitors can see first hand the uniqueness of making this woven cloth.
The strength possessed by the MSMEs of the Indonesian people cannot be doubted anymore, coupled with the commitment and seriousness shown by the Government by continuing to encourage MSMEs to be able to compete in the global market through the ASEAN 2023 forum, the optimism that the local products of the nation’s children will be able to dominate the international scene getting in sight.
*) Young Volunteer of West Manggarai, NTT
