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Small businesses urged to look beyond EU, US for global expansion
Trade Minister Zulkifli Hasan has acknowledged the formidable challenge SMEs face in venturing out of Indonesia, particularly into Western markets, due to the intricate regulatory requirements.
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Ministry of Cooperatives and SMEs entrepreneurship department secretary Bastian (left to right), Hijack Sandals cofounder and CMO Fahmi Faisal, WhatsApp Indonesia public policy manager Esther Samboh, Trade Minister Zulkifli Hasan, Meta Indonesia country director Pieter Lydian, Sambal Bu Rudy owner Lanny Siswadi and ukmindonesia.id founder Dewi Meisari share the stage at the WhatsApp MSME Summit 2023 in Jakarta on June 27, 2023. (Whatsapp/-)
W
hile micro, small and medium enterprises (MSMEs) are looking at vast untapped market potential outside of Indonesia, Trade Minister Zulkifli Hasan has noted the formidable challenges they face, particularly in Western markets, due to intricate regulatory requirements.
“[Bringing] MSMEs to the Western market is a challenge. [The West is] fussy,” he said at the WhatsApp MSME Summit 2023 held in Jakarta on Tuesday, reflecting on his recent trade meetings with the European Union’s parliament.
MSMEs contribute more than 60 percent to Indonesia’ gross domestic product (GDP) and account for some 97 percent of the nationwide labor force, according to government data.
The EU requires fair trade certificates for certain commodities, such as coffee and cocoa, and obtaining those can be costly for small businesses with limited financial resources.
“How do people sell coffee with a certificate? It's hard. Those that are internationally recognized are expensive,” the minister explained.
Read also: Commodity downturn to eat into state revenue, Finance Ministry says
Recognizing the high costs involved in getting such international certification in Western markets, the Trade Ministry has initiated efforts to explore alternative large markets with comparable purchasing power that it deems “suitable for Indonesian products”.
