Micro, Small, and Medium Enterprises (MSME) in Indonesia have the potential to tap into foreign markets, and the government is actively encouraging them to do so. However, Indonesia's participation in the Global Value Chain (GVC) currently stands at only 4.1% of the total business units, lagging behind neighboring countries like Malaysia (46.2%), Thailand (29.6%), Vietnam (20.1%), and the Philippines (21.4%).
Ivan Paulus, the CEO of Livingstone International, representing the Indonesian diaspora in Australia, highlighted the demand for Indonesian products in Australia. Yet, the current import value from Indonesia remains low, accounting for less than 12% of the USD 220 million worth of 65,000 imported products. To meet the growing demand for Indonesian products in Australia, there is a need to accelerate production from factories and Indonesian MSME. The Indonesian government is supporting MSME through low-interest financing facilities like the People's Business Credit (KUR) and various fiscal incentives for export-oriented businesses. A task force called Satuan Tugas (Satgas) Ekspor has been formed to expand the export market for MSME, as President Joko Widodo aims to strengthen government support for MSME.
During the meeting, Coordinating Minister Airlangga and Foreign Minister Retno witnessed trade agreements between Livingstone International and PT Asia Cakra Ceria Plastik and Livingstone with La Moringa. They also applauded the active support of the Indonesian diaspora in advancing MSME to enter the export markets, especially in Australia.
