Interministerial Collaboration Supports MSMEs to Enter Global Market

Minister of Cooperatives and Small and Medium-sized Enterprises Teten Masduki. (Photo by: Cabinet Secretariat)

In a bid to follow-up instruction of President Joko “Jokowi” Widodo, Ministry of Trade and Ministry of Cooperatives and Small and Medium-sized Enterprises work hand in hand to assist Micro, Small, and Medium-sized Enterprises (MSMEs) entering export markets.

Minister of Trade Muhammad Lutfi said that there are four measures to be implemented in supporting the MSMEs, such as: identification of products to be sold at the international markets, consistency of quality of the products, simplified permitting processes, and information about potential target markets.

“Accurate identification made by ministries, institutions, and related associations is expected to be able to develop MSMEs’ products so they will be successful when competing in global market,” he said.

In the meantime, Minister of Cooperatives and Small and Medium-sized Enterprises Teten Masduki expressed belief that the collaboration can increase competitiveness of our MSMEs to enter global market.

He went on to say that the Ministry is working on several initiatives to increase the capacity of MSMEs in export, among others by encouraging the MSMEs to enter formal sector, managing MSMEs groups, and developing MSMEs that produce the country’s top commodities.

“By doing so, it will be easier for the MSMEs to have global value. In addition, we will also expand it to digital market,” he firmly said.

The Government also eases export and import permit procedures for exporters, provided information on market demand, export tax, and regulation in export target countries through Ministry of Finance’s National Single Window.

Based on Trade Ministry’s data, there are 13,177 MSMEs that are connected to export markets. They represent 90 percent of national exporters recorded from January to September 2020. Their products are, among others, wood and wood products, furniture and lamp, machineries and mechanical tools, plastics and plastic products, clothes and accessories, electric machine, fish and shrimp, coffee, tea, spices, vegetable oil, and fruits.

Through effective collaboration, entrepreneurs and prospective entrepreneurs can get direct benefits from the Government’s programs. It is also expected to improve competitiveness of Indonesia’s products in global market and makes it easier for the entrepreneurs to do business. (MINISTRY OF TRADE/MINISTRY OF COOPERATIVES AND SMALL AND MEDIUM-SIZED ENTERPRISES/AIT/UN) (RAS/MMB)