Illustration ( Rizal)
Illustration ( Rizal)

Govt Draws Attention to Challenges Facing MSMEs to Go Global

English creative industry (en)
Antara • 28 August 2020 19:04
Jakarta: Tourism and Creative Economy Minister Wishnutama Kusubandio shed light on the various challenges facing micro, small, and medium-scale enterprises (MSMEs) in the creative industry to penetrate the global market.
"(The challenges) pertain to logistics, documentation and administration, and high export fees. The creative industry is dominated by MSMEs, and not all of them understand the process to export," the minister stated during the Indonesia Creative Works 2020 Exhibition in Jakarta on Friday.
Other problems faced by MSMEs are the limited production capacity, lack of production machinery, and market information for their products, coupled with their lack of confidence in entering the export market.

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"They do not have the digital marketing ability or e-commerce platform for exports and consequently have to bear high costs," Wishnutama stated.
Several operators in the creative industry have encountered difficulties in obtaining raw materials during the imposition of Large-Scale Social Restrictions (PSBB) since some of the basic materials were imported.
"The enforcement of PSBB has disrupted the distribution of logistics, and this has increased the delivery time," he stated.
On the other hand, the industry's revenue has declined with the drop in consumer demand, while capital loan cannot be easily accessed.
In its efforts to solve the problems, he affirmed that the ministry had selected some MSMEs to partake in online promotion to the international market and had created a special directory of creative products to be distributed to all Indonesian representatives abroad.
The ministry has also worked closely with all stakeholders to provide stimulus and capital loan to creative industries and had cooperated with the market place.
Wishnutama believes that the industry should derive the necessary momentum presented by the covid-19 pandemic to accelerate the digitalization process using the e-commerce platform.
In May 2020, the government had launched the national campaign, bearing the hashtag #BanggaBuatanIndonesia (Proud of the Indonesian Products), to promote products made in Indonesia. (antara)

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