The experience during the pandemic has shown that Micro, Small, and Medium Enterprises (MSMEs) capable of enhancing their performance are those that are willing to expand their global market, in addition to adopting digital strategies. However, it is known that the contribution of Indonesian MSMEs to national exports is still limited. Despite being a business group with over 65 million entities and a significant source of employment, MSMEs only contribute around 15.6% to the total value of national exports. This proportion is relatively low compared to the contribution of MSME exports in other countries, such as China at 60%, South Korea at 48%, and neighbouring countries like Singapore at 41%, and Thailand at 29%.
In line with the government's target of a 17% contribution to national exports by MSMEs in 2024, it is essential to implement initiatives strengthening export-oriented MSMEs for accelerated export growth. Thus, supportive measures, guided by various sources and compiled into a module, are necessary to provide solutions for challenges in production, management, and market access, facilitating entry into the export market.
In response to these challenges and as an effort to achieve and maintain the stability of the IDR value through the development of export-oriented and globally competitive MSMEs, Bank Indonesia has collaborated with LPEM FEB UI to formulate a module titled "Guidance for MSMEs Global Expansion: 9 Structured Steps for a More Strategic Global Expansion."
The module can be utilized by mentors, facilitators, and MSMEs in preparing to enter the global market with a focus on strengthening the 5K aspects (quality, quantity, capacity, continuity, and packaging) and 2S elements (standardization and certification). To enhance usability, the module consists of 9 structured steps aligned with the direction of export-oriented MSME development. It is presented in easily understandable language and is supplemented with links from various sources, avoiding duplication but complementing existing information.
Through this module, MSMEs and MSME facilitators will be guided to understand various information related to exports. This includes reasons behind exports, compiling export plans and readiness, formulating steps to improve the 5K2S aspects, selecting export destination countries, understanding international trade regulations and laws, planning promotions and marketing, and even expanding the scale of export business.
Just like life journeys, the business path for each MSME can be different. The understanding of each stage in the 9 steps presented in this book should be seen as a checklist of preparatory measures essential for getting ready to go global.
Scan to Download Module
