The Ministry of Cooperatives and Small and Medium Enterprises target the contribution of exports of product of Micro, Small and Medium Enterprises (MSMEs) by 2014 o increase 20%. At this time, the contribution of MSMEs to the national exports is only around 17%. A total of 600,000 MSMEs from around 55 million MSMEs in Indonesia have been exporting various kinds of commodities. Most of MSMEs export products are handicraft, fashion and accessories, as well as furniture, food products, and herbal medicines.
MSMEs export contribution is small when compared to large business such as plantation ad mining. However, MSMEs still have the potential to enter the export market. “In addition, its contribution to the national non oil & gas exports is greater”, said Assistant Deputy for Export and Import Affairs of the Ministry of Cooperative and SMEs, Bonar Hutauruk, in Jakarta (Friday, July 12).
Bonar said that of the 600,000 MSMEs that are already doing exports, they are divided into three categories, namely direct export, export through middlemen or traders, and cooperation system. To further encourage MSMEs to enter the export market, the Ministry of Cooperatives and SMEs is also conducting trials of cargo sharing program, where in the program a number of MSMEs can jointly perform export directly. With this system, data of exports of MSMEs products can be better monitored, in addition to providing greater profit margin for MSMEs.
Meanwhile, as many as 75 SMEs under the guidance of the Ministry of Trade will develop its trademark this year. The trademark development is done in order to facilitate local SME products to penetrate the export market. Because a products with a well-planned brand, which is designed attractively, and communicated appropriately, will more easily enter the overseas market and compete with products of other countries.
The use of trademark by local SMEs is expected to increase buying interest and selling prices of their products. The existence of trademark will also enable consumers to identify the products, so that they can more quickly search and find the same product in the future. Increase in the competitiveness of Indonesia export products through brand development is a strategic move that had great benefits both in the short and long terms. Unfortunately, there are still many business, particularly SMEs, who are not aware of the role brand in increasing export competitiveness.
The Ministry of Industry reported that the products of SMEs that have been patented is very small, which is only about 1% of total of SME products nationally. In fact, patents are very important to protect the copyright of SMEs products. Based on data of the Ministry of Industry, currently there are approximately 3.8 million units of SMEs in the country. Approximately 75% of them are spreading across Java, while the remaining 25% are outside Java.
The problems faced by SMEs in introducing their products abroad is very complex, in addition to internal issues that have not been resolved until now. A variety of proven strategies to penetrate the export market barriers is a challenge for each SME. Marketing strategy, for example, in marketing their products, MSMEs need to first find an export market before producing goods. After a target market is found, SMEs conduct an online communication through multiple social networking sites on the internet. “Here, they also explain their products to prospective buyers”, he said. (E)
Business News - July 17,2013