DEPUTY Minister of Trade (Wamendag) Dyah Roro Esti said that Indonesian women’s MSMEs have the potential to penetrate the global market. Moreover, for a long time this sector has played an important role as the backbone of the Indonesian economy.
According to the latest data from the Ministry of MSMEs, the number of MSMEs in Indonesia in 2024 will reach more than 66 million units and contribute to Gross Domestic Product (GDP) of 61% or IDR 9,580 trillion. Around 99% of the total MSMEs are in the micro business category and 64% of business actors are women.
“If we can empower MSMEs, it will not only be economic empowerment, but also empowering women,” said Dyah in her official statement, Wednesday (6/11).
Dyah hopes that the presence of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) with economic cooperation through Katalis, can be a bridge to help Indonesian MSME products to enter the international market or go globalone of which is Australia.
“The partnership that is increasingly strengthened by the Indonesia-Australia trade agreement will provide benefits for female SMEs. This will enable increased involvement of women in trade and investment through policy reform guided by the agreement for Indonesia,” explained Dyah.
However, Dyah reminded that not all Indonesian MSME products can be easily exported thanks to this collaboration. MSME products, he continued, must prioritize quality in accordance with applicable regulations in the destination country.
Therefore, he considers that there is a need for guidance, assistance and improvement in the quality and performance capacity of Indonesian MSMEs so that their products can be accepted and sought after by buyers from abroad.
“Networking is the key to success. Collaboration across sectors, not only women but entrepreneurs who want to contribute to Indonesia’s progress and development. Collaboration is very important in the future. Apart from that, innovation is needed so that MSMEs remain competitive in the global market,” he said.
On the same occasion, Australia’s Deputy Ambassador to Indonesia, Gita Kamath, admitted that the development of women’s entrepreneurship in Indonesia was growing rapidly. However, there are still various challenges that must be overcome so that MSMEs can grow and become global.
“Women-run entrepreneurship is very important for the Australian and Indonesian economies, and for developing a close economic partnership. I am proud of the work we are doing with Indonesia to empower women entrepreneurs, including through the Katalis program,” explained Gita.
According to Katalis research, IA-CEPA 2020-2025 will increase Indonesia’s Gross Domestic Product (GDP) by AU$ 28-46 million in 2038, and will increase Australia’s GDP by AU$ 21 million.
Meanwhile, Australian Business Champion for Indonesia, Jennifer Westacott, stated that trade is not only an economic activity, but also builds bridges between culture and society. Therefore, it is very important that more women can be empowered to achieve these things.
“We must work together to fully unlock the entrepreneurial potential of women,” said Jennifer.
Indonesian trade attache in Canberra, Haris Setiawan, admitted that it was not easy to build export-oriented MSMEs.
“Therefore, it is necessary to understand the regulations of the export destination country. You cannot sell directly, even though there is already a distributor in that country. Because, it could be that the distributor also has an existing supplier. Buyer looking for the best quality and the most competitive price. “Therefore, business actors must be able to highlight their products so that they can attract the right foreign buyers,” he explained.
Managing Director of Indonesian Trading House Sydney (ITHS) Antonius Auwyang explained that his party is ready to help in providing understanding, coaching and assistance to Indonesian MSMEs who want to enter the Australian market. This is done so that export goods from Indonesia can be accepted and match market needs in Australia. So far, several markets in Adelaide, Melbourne and Brisbane have succeeded in receiving products from Indonesian MSMEs. (J-3)
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**Interview with Dyah Roro Esti, Deputy Minister of Trade, on the Potential of Indonesian Women’s MSMEs**
**Editor:** Thank you for joining us today, Deputy Minister Dyah Roro Esti. To start, can you share your insights on the importance of women-run MSMEs in Indonesia?
**Dyah Roro Esti:** Thank you for having me. Women-run MSMEs are crucial to the Indonesian economy, constituting around 64% of all business actors. They play a significant role in job creation and livelihood improvement. Our latest data shows that MSMEs comprise more than 66 million units and contribute to 61% of our GDP. Empowering women in this sector leads not only to economic independence but also to the overall empowerment of communities.
**Editor:** You mentioned the impact of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) on MSMEs. How can this partnership help these businesses?
**Dyah Roro Esti:** The IA-CEPA is a pivotal agreement that facilitates a stronger economic partnership between Indonesia and Australia. It serves as a bridge for our MSME products to enter international markets. Particularly for women entrepreneurs, this agreement enhances their involvement in trade and investment. However, we must ensure that our products meet quality standards and comply with regulations in the destination countries.
**Editor:** What specific measures are being taken to assist MSMEs in meeting these quality standards?
**Dyah Roro Esti:** We recognize the need for comprehensive support systems, including guidance and capacity-building initiatives for MSMEs. This involves training on quality assurance and performance improvement. Networking is also key; we are encouraging collaboration among businesses, policymakers, and various sectors to enhance the competitiveness of our MSMEs globally.
**Editor:** In your view, what challenges do Indonesian women’s MSMEs still face today?
**Dyah Roro Esti:** While there has been substantial progress, challenges such as access to financing, market information, and infrastructure still exist. Additionally, women entrepreneurs often face societal barriers that limit their opportunities. Addressing these challenges requires a concerted effort from the government, private sector, and international partners.
**Editor:** what message do you have for women entrepreneurs looking to expand their businesses internationally?
**Dyah Roro Esti:** My message is simple: believe in your potential and seek collaboration. Leverage partnerships and networks to gain access to markets and resources. Innovation, quality, and a determination to succeed are essential. Together, we can ensure that Indonesian women’s MSMEs thrive on the global stage.
**Editor:** Thank you, Deputy Minister Dyah Roro Esti, for sharing these valuable insights!
**Dyah Roro Esti:** Thank you for the opportunity!