Indonesian SMEs Record 14pct Growth in Exports

JAKARTA, KOMPAS.com – Indonesian small and medium enterprises (SMEs) have recorded a 14-percent growth in exports in 2020, said Minister of Cooperatives and SMEs Teten Masduki.

President Joko ‘Jokowi’ Widodo gave Teten the task of increasing export activities of Indonesian SMEs.

Teten explained on July 9 that the ministry is focusing on empowering Indonesian SMEs that have unique products with export potential.

Read also: Luhut Panjaitan: Indonesian SMEs are the Backbone of National Economy

To achieve the goal set forth by Jokowi, Teten said his ministry has focused on collaborating with ministries, institutions, the international business community as well as academics.

The collaboration is hoped to roll out the ministry’s plans to meet the big task of fulfilling Jokowi’s goal smoothly.

“Let me remind you that exports and imports have gone down. This is the ideal moment for us to position Indonesian SMEs’ products in the market.” 

The Indonesian government has set aside several programs to improve the competitiveness and quality of Indonesian SMEs and their products.

Read also: More Indonesian SMEs Poised to Gain Access to Social Assistance Programs

One of the ministry's programs is Foster SMEs which encompasses a partnership with e-commerce companies in Indonesia.

“In the Foster SMEs program, our Indonesian SMEs are provided training, guidance, and all necessary materials to establish an online presence and compete. We initiated this program together with other e-commerce companies,” said Teten Masduki.

Going digital

Around 789,000 Indonesian SMEs have joined the digital platform through the government’s Proud Indonesian Products program.

The program was the Indonesian government’s effort to support Indonesian SMEs that have been affected by the coronavirus pandemic.

Teten said that since May 14, 2020, the program has seen the participation of 789,000 Indonesian SMEs.

Read also: More Than Virtual Hugs: Grab Indonesia Helps SMEs Go Digital

The government aims to include two million Indonesian SMEs in the program by year-end 2020.

Although the current figure is relatively small, the Minister is confident that the 2020 target can be achieved.

To do so, Indonesia’s Ministry of Cooperatives and SMEs has set two strategies to get Indonesian SMEs to go digital.

Read also: Go Digital, Indonesian Agricultural Small Businesses Urged

“First, expand access to the domestic and international markets. Second, improve the business process through better efficiency,” said Teten Masduki.

The government has sought to further support Indonesian SMEs by establishing digital infrastructure in addition to improving production processes and human capital capacity. 

(Writer: Elsa Catriana | Editor: Bambang P. Jatmiko, Erlangga Djumena)

Source: https://money.kompas.com/read/2020/07/09/153000126/menkop-teten--ekspor-produk-umkm-naik-sebesar-14-persen

https://money.kompas.com/read/2020/07/09/171000026/menteri-teten--789.000-umkm-sudah-go-digital-