By: Aristika Utami
The Micro, Small, and Medium Enterprises (MSME) sector is a key pillar of Indonesia’s economy. Its contribution to Indonesia’s Gross Domestic Product (GDP) is significant, with approximately 60% of the country’s GDP originating from the MSME sector, which also absorbs nearly 97% of the workforce across the nation.
With such immense potential, the development and empowerment of MSMEs have become a major focus of the new administration. In this context, the Prabowo Subianto and Gibran Rakabuming Raka administration plays a crucial role in enhancing market access for Indonesian MSME products.
The Digital House of East Kalimantan has supported MSMEs by providing a platform that offers various services to help expand marketing efforts through online platforms. The Coordinator of the Digital House of East Kalimantan, Irmade Susanti, stated that digital technology can boost competitiveness through social media and e-commerce management. It is hoped that this will increase the number of MSMEs successfully utilizing technology for their growth while simultaneously driving the development of the local economy.
The Prabowo-Gibran administration faces both challenges and significant opportunities in expanding market access for Indonesian MSME products. One of the steps that can be taken is encouraging the use of digital technology. In today’s modern era, the internet and information technology play a crucial role in broadening market reach.
Digitalization can also change the operational methods of MSMEs. With technology, business owners can optimize inventory management, product distribution, and payment processing more efficiently. This will support smoother marketing processes and reduce operational costs. The use of digital platforms by MSMEs will provide ease in introducing products, interacting with consumers, and conducting transactions without spatial and temporal limitations.
Minister of Micro, Small, and Medium Enterprises (MSMEs) Maman Abdurrahman stated that his ministry is expanding partnership opportunities and market access for MSMEs to Malaysia. This initiative aims to help MSME entrepreneurs compete in both regional and global markets.
Furthermore, the capacity-building of MSMEs can be achieved through collaboration in technological innovation for production to enhance business competitiveness. It is essential for the Prabowo-Gibran administration to encourage collaboration between MSMEs, the private sector, and financial institutions. In this regard, the private sector, particularly large companies, can serve as strategic partners for MSMEs.
Deputy Minister of Trade, Dyah Roro Esti Widya Putri, highlighted the Ministry of Trade’s commitment to supporting Small and Medium Enterprises (SMEs) in Bali to expand their market access through exhibitions. In its efforts to broaden the market, the Ministry of Trade emphasizes the strengthening of international trade diplomacy, including active participation in international forums, accelerating trade negotiation resolutions, and addressing trade disputes.
Building partnerships between MSMEs, the private sector, and financial institutions can also open opportunities for MSME products to enter international markets. The government can facilitate these partnerships through export programs that connect MSMEs with buyers or distributors abroad. One approach is by assisting MSMEs in participating in international exhibitions or business forums, which will allow them to introduce their products to the global market. Promotional programs for MSME products in international markets will increase the visibility of Indonesian products and open up greater export opportunities.
On the other hand, achieving this goal requires the simplification of regulations and pro-MSME policies. Complex regulations often become obstacles for MSME players in growing their businesses. Therefore, the Prabowo-Gibran administration can simplify licensing and administrative processes for MSMEs. With simpler and more efficient policies, MSME players can focus more on product development and marketing without being burdened by convoluted bureaucracy.
Fiscal policies that support MSMEs, such as tax incentives and subsidies, are also critical in creating a conducive environment for MSME growth. With such incentives, MSME players will find it easier to access markets, increase product competitiveness, and innovate in facing increasingly intense market competition.
Moreover, it is important for the Prabowo-Gibran administration to create an ecosystem that supports MSME development. This ecosystem should involve various stakeholders in the supply chain, distribution, and marketing of products. The government can facilitate collaborations between MSME players and various other sectors, such as educational institutions, research and development sectors, and the private sector, to foster product innovation and enhance competitiveness. By building a strong ecosystem, MSME players will not only have easier access to markets but also receive more comprehensive support in running their businesses.
Overall, the Prabowo-Gibran administration plays a very important role in expanding market access for Indonesian MSME products. By implementing the right policies and focusing on strengthening infrastructure, digitalization, partnerships with the private sector and financial institutions, and simplifying regulations, Indonesian MSMEs will be better prepared to compete in both domestic and international markets. These steps are expected to encourage inclusive economic growth, create more job opportunities, and strengthen the competitiveness of MSME products in the global market.
*) Public Analyst
