Indonesia has launched significant efforts to bolster the export capabilities of its micro, small, and medium enterprises (UMKM), marking a new chapter for local businesses aiming for international markets. On February 20, 2025, the Ministry of Cooperatives and Small and Medium Enterprises (Kementerian UMKM) celebrated the maiden export of 22 UMKM products to the Philippines, with the total transaction value reaching Rp 961 million (approximately $66,000).
Vice Minister of UMKM, Helvi Yuni Moraza, officiated the ceremony, which showcased various products ranging from food items to fashion and handicrafts. “Today we are witnessing the first export of products from 22 UMKM to the Philippines, and we need to acknowledge LPEI for their collaborative support,” she stated during the press conference held in South Jakarta.
The initiative is part of the government's broader strategy to support UMKM, particularly through financial schemes and capacity-building programs. The Ministry has committed to disbursing Rp 300 trillion through the People's Business Credit (KUR) program, emphasizing its focus on aiding small enterprises.
“Under the Red and White Cabinet, we are obligated to collaborate,” added Moraza, referring to the collective efforts of various ministries to promote UMKM initiatives, including the 'UMKM Go Export' program overseen by the Ministry of Trade.
Deputy for Small Enterprises at the Ministry of UMKM, Temmy Satya Permana, elaborated on the export scheme, which is part of the 'Campus UMKM' program initiated by the ministry. The 22 UMKM products are scheduled to depart on February 22, 2025, with an estimated transit time of 19 days to reach their destination.
“The container carrying these products will leave on February 22, facilitated by LPEI for shipping logistics. This reflects our commitment to empower small enterprises to enter the international market,” said Permana.
According to statistical data from BPS (Badan Pusat Statistik), the textile and apparel sector, which comprises many UMKM, has seen impressive growth, with exports valued at $9.85 billion and volume reaching 1.6 million tons as of 2024. “The export performance is driven by categories such as silk, textiles, carpets, and garments, contributing to the overall increase compared to 2023,” added Permana, highlighting the competitive edge of UMKM products.
On the synergies of these initiatives, the 'Youth Can Export' program has emerged as another innovative platform launched by Shopee Indonesia alongside SMESCO and Kementerian UMKM. This initiative aims to provide training and guidance to 18 selected UMKM, enabling them to access Shopee's extensive platform for export opportunities.
During the launch of this program, Vice Minister Moraza stated, “This initiative is pivotal for strengthening Indonesia's creative industry ecosystem to compete globally, with the fashion sector representing significant export value.”
SMESCO's Director, Wientor Rah Mada, outlined the program's goal to facilitate more businesses entering eight international markets, including the Philippines, Colombia, and Chile, with Malaysia identified as the initial target due to its demographic similarities with Indonesia.
“With the upcoming Ramadan period, it’s the right moment to increase our product demand there,” Rah Mada noted during the event.
Shopee's efforts have reportedly helped market more than 50 million UMKM products throughout Southeast Asia and Latin America, demonstrating the platform’s commitment to enhancing the visibility of local products.
Head of Public Affairs at Shopee Indonesia, Radynal Nataprawira, mentioned, “Collaborative efforts like today’s mark another milestone for our goal to bring more Indonesian products to international buyers.” He acknowledged the positive growth trend noted on Shopee’s platform, which recorded a 200% increase in sales through its local product channels.
Further support for the UMKM sector is illustrated through the local educational platform, the 'Campus UMKM'. This initiative focuses on increasing the capabilities of entrepreneurs through standardized training and certifications, ensuring they are skilled and ready for international competition. This training includes webinars, hands-on workshops, and direct assistance to promote effective participation from UMKM owners.
Recognizing the importance of digital integration, the ministry’s programs incorporate digitalization trends to help local entrepreneurs access and thrive within the global market.
Overall, these initiatives signify Indonesia's commitment to empowering its small enterprises, providing them with the necessary tools and resources to succeed on the global stage. The partnership between government bodies and private sectors like Shopee aims to expand market access and improve the quality of Indonesian goods offered abroad, creating sustainable economic growth for the country.