Prabowo Gibran Government Expands Market Access for MSME Products
By: Aristika Utami
The Micro, Small, and Medium Enterprises (MSMEs) sector is the main pillar of the Indonesian economy. Its contribution to Indonesia’s Gross Domestic Product (GDP) is very large, even around 60% of the country’s GDP comes from the MSME sector, which also absorbs almost 97% of the workforce throughout Indonesia.
With such great potential, the development and empowerment of MSMEs is one of the main focuses of the new government. In this case, the Prabowo Subianto and Gibran Rakabuming Raka governments have an important role in increasing market access for Indonesian MSME products.
The support of the East Kalimantan Digital House for MSMEs, by becoming a forum that provides various services that support expanding marketing through online platforms. The Coordinator of the East Kalimantan Digital House, Irmade Susanti said that digital technology can increase competitiveness, through social media, to e-commerce management. This is expected to increase the number of MSMEs that successfully utilize technology for their growth, while also encouraging the local economy to grow even further.
The Prabowo-Gibran government has both challenges and great opportunities to expand market access for Indonesian MSME products. One step that can be taken is to encourage the use of digital technology. In this modern era, the internet and information technology play an important role in expanding market reach.
Digitization can also change the way MSMEs operate. With technology, business actors can optimize inventory management, product distribution, and more efficient payment processing. This will certainly support the smooth marketing process and reduce operational costs. The use of digital platforms by MSMEs will make it easier to introduce products, interact with consumers, and make transactions without space and time constraints.
The Minister of Micro, Small, and Medium Enterprises (MSMEs), Maman Abdurrahman said that his party is opening up opportunities for expanding partnership patterns and MSME market access to Malaysia. This effort is to encourage MSME entrepreneurs to be able to compete in regional and global markets.
In addition, increasing the capacity of MSMEs can also be done through collaboration in production technology innovation to increase business competitiveness. It is important for the Prabowo-Gibran government to encourage collaboration between MSMEs and the private sector and financial institutions. In this case, the private sector, especially large companies, can play a role as a strategic partner for MSMEs.
Deputy Minister of Trade, Dyah Roro Esti Widya Putri said the Ministry of Trade’s (Kemendag) commitment to supporting Small and Medium Enterprises (SMEs) in Bali to expand their market access through exhibition activities. In order to expand the market, the Ministry of Trade prioritizes strengthening international trade diplomacy, including active participation in international forums, accelerating the completion of trade negotiations, and resolving trade disputes.
Building partnerships between MSMEs and the private sector and financial institutions can also open up opportunities for MSME products to be marketed in the international market.
The government can facilitate this partnership through an export program that connects MSMEs with buyers or distributors abroad. One way that can be done is by facilitating MSMEs to participate in international business exhibitions or forums that allow them to introduce products to the global market. MSME product promotion programs in the international market will increase the visibility of Indonesian products and open up greater export opportunities.
On the other hand, to achieve this goal, simplifying regulations and policies that are pro-MSMEs is also very necessary. Complicated regulations often become a barrier for MSMEs in developing their businesses. Therefore, the Prabowo-Gibran government can simplify the licensing and administration process for MSMEs. With simpler and more efficient policies, MSMEs can focus more on product development and marketing without being burdened by complicated bureaucracy.
Fiscal policies that support MSMEs, such as providing tax incentives and subsidies, are also very important to create a conducive environment for MSME growth. With these incentives, MSMEs can more easily access markets, increase product competitiveness, and be more innovative in facing increasingly tight market competition.
