Launching from Bisnis Indonesia, the export performance of Indonesian Micro, Small and Medium Enterprises (MSMEs) is still relatively low when compared to a number of countries in Asean. According to the Ministry of Cooperatives and SMEs (KemenkopUKM), the contribution of MSMEs to non-oil and gas exports is at the level of 15.7 percent. This number is very low compared to several other countries such as Singapore 41 percent, Thailand 29 percent, or China which reaches 60 percent.
According to dataindonesia.id, the number of MSMEs in Indonesia is the highest in Southeast Asia, reaching 97%, other Southeast Asian countries do not even touch 86%. Based on this data, Indonesia should be able to compete on the international stage with other Southeast Asian countries that have advanced earlier.
One of the reasons why Indonesia's MSME exports are so low is because the feasibility of Indonesian products in meeting export needs is considered inadequate. The government is currently trying to encourage Indonesian MSMEs so that they can penetrate exports according to the plan, in 2024 non-oil and gas exports will reach 17 percent.
In order to encourage MSMEs to fulfill their export eligibility, the current government has implemented tips so that MSMEs can easily fulfill all efforts. Such as implementing simplification of permits and provision, then facilitating investment facilitation which makes it easy for foreign or domestic business actors to invest in all regions of Indonesia in a balanced manner. This licensing simplification aims to shorten the time to obtain a business license, shorten the bureaucratic path that previously required a lot of time, and eliminate extortion for obtaining a business license.
As for other government plans to support MSMEs, such as increasing cooperation schemes with international trade, creating new exporters, to increasing the participation of all Indonesian business actors, especially MSMEs in a global production network. Therefore, all forms of government programs and plans in advancing MSMEs will be implemented thoroughly so that the targets set can be achieved.
The factor in Indonesia's low MSME exports actually does not purely come from government policies alone. The awareness and strength of the participation of business actors in participating in advancing MSME exports is also considered influential. The single biggest factor in Indonesia's low exports is due to the lack of knowledge of business actors in utilizing digital marketing. In the era of globalization, having a market in the digital world so that their marketing acumen greatly influences international competition.
According to the Ministry of Cooperatives and Small and Medium Enterprises, a digital marketing strategy in the form of using social media is very important. Besides being able to expand consumer networks through the use of social media in marketing their products, digital marketing can also increase competitive advantage for MSMEs themselves.
Changes in marketing behavior from conventional to digital are not matched by MSME actors to use digital marketing, even though MSMEs are believed to be able to spur the Indonesian economy. The use of digital technology-based marketing concepts by MSMEs is the hope for the country to develop into a center of economic power. MSMEs should be able to use social media as the main means of digital marketing. In addition to low costs and no need to have special expertise in initial initiation, social media is also considered capable of directly reaching consumers.
In this case, the low export of Indonesian MSMEs has become evident. Business actors who should be able to compete with state support have instead been left behind by other countries which are considered to be far behind in material terms than Indonesia.
Reference
Rayful Mudassir. BisnisIndonesia.id. 2022. Indonesia's MSME export performance is low, losing to neighboring countries.
Ministry of Communication and Information of the Republic of Indonesia. 2016. Improving the Investment Climate, Non-Oil and Gas Exports and Fiscal Reform.
Ministry of Cooperatives and SMEs of the Republic of Indonesia. 2022. Utilization of Digital Marketing by MSME Actors.
