Appreciation of Government Efforts to Embrace Private Sector to Develop MSMEs
By: Andi Mahesa)*
MSMEs (Micro, Small, and Medium Enterprises) have long been the backbone of the Indonesian economy. In addition to contributing 60 percent to the national GDP, this sector also absorbs 96.92 percent of the country’s workforce. However, the big challenge for MSMEs is how they can develop and be competitive, especially in facing the global market. For this reason, the role of the government together with the private sector is very important in order to open wider market access for MSMEs.
The Director General of National Export Development of the Indonesian Ministry of Trade, Fajarini Puntodewi, said that her party is committed to increasing exports of Indonesian MSME products to the South Korean market. One of the efforts made is to facilitate meetings of entrepreneurs from both countries through various business forums and business explorations (business matching).
This kind of forum not only provides an opportunity for Indonesian entrepreneurs to introduce their products, but also opens up opportunities for collaboration and wider market expansion.
The ASEAN-Korea Trade and Investment Facilities Mission to Indonesia business meeting will also support the implementation of priority programs of the Indonesian Ministry of Trade, one of which is the expansion of export markets and the increase in MSMEs that Dare to Innovate, Ready to Adapt to Exports (MSMEs BISA Ekspor). Programs like this are very important because they open up opportunities for MSMEs to not only survive, but also develop through wider knowledge and networks in the international market.
The ASEAN-Korea Trade and Investment Facilities Mission to Indonesia activity was held thanks to the collaboration of the ASEAN Korea Center (AKC) with the Korean Importers Association (Koima), the Ministry of Trade, the Indonesian Embassy (KBRI) in Seoul, and supported by Bank Rakyat Indonesia (BRI) with the aim of developing Indonesian MSME products to the global stage.
Puntodewi explained that South Korea is one of Indonesia’s most important economic partners in East Asia. She noted that Indonesia’s trade and investment relations with South Korea have grown rapidly over the years. In January-November 2024, the total trade between the two countries reached USD18.37 billion.
This balanced trade shows how Indonesia and South Korea are growing to achieve shared prosperity.
In addition, the Ministry of Trade is also actively providing training and coaching to MSMEs so that they are better prepared to face the challenges of marketing their products abroad. This shows that the government is not only focused on efforts to expand the market, but also equips MSMEs with the skills and knowledge needed to survive in global competition.
This success cannot be separated from the synergy between the government and the private sector, represented by business actors and related institutions. Seoul Trade Attaché, Eko Prilianto Sudradjat said that the high number of Indonesia’s trade commitments with South Korea could be achieved thanks to close cooperation between the Indonesian Ministry of Trade and the economic function of the Indonesian Embassy in Seoul. Diplomacy carried out by the Indonesian government in this trade sector plays a vital role in creating a more conducive business climate.
According to Seoul Trade Attaché, Eko Prilianto Sudradjat, the first diplomatic strategy is to increase the implementation of promotions involving more stakeholders/private parties. Second, opening communication and assistance for Indonesian business actors who are trying to penetrate the South Korean market. Third, collaboration with business associations in organizing promotional activities. Fourth, encouragement of cooperation with agencies, state-owned enterprises, and the private sector to support promotional activities and curation of business actors who can export.
These strategies are implemented to support the export of Indonesian products to South Korea and pave the way for Indonesian MSMEs who want to penetrate the South Korean market. Not only that, the private sector or South Korean stakeholders also play a role in encouraging the development of MSMEs. They help open access to technology, distribution networks, and capital that are greatly needed by MSME actors so that they can produce quality goods and meet global market standards.
The success of this cooperation between the government and the private sector creates a synergy that not only focuses on meeting domestic needs, but also on developing enormous export potential.
On the other hand, support for MSMEs does not only come from the central government. Local governments and the private sector also have an important role in ensuring that MSME actors can develop optimally.
