Indonesia calling for regional cooperation in SME sector

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By CGTN’s Silkina Ahluwalia

The Indonesian government has been working to enable small and medium enterprises to be more globally competitive and innovative.

Dongengan is one of 52 million small and medium enterprises (SMEs) in Indonesia. The brand features custom orders made from Indonesian traditional fabrics and ready-to-wear collections in various fabrics.

Its founder, Marsha, is looking to penetrate the regional market to reach a wider customer base, which hasn't been easy because of the information asymmetry between potential sellers and buyers.

A look from one of Dongengan’s ready-to-wear collection. /Pinterest.com

“The interest is there, but potential buyers don't know what to search for and potential sellers don't know where to sell. How do we get the two to meet?” said Marsha Siagian, Founder of Dongengan.

There’s still much to be done to nurture local brands like Marsha’s.

Indonesian President Joko Widodo is now encouraging the ASEAN community to increase cooperation in the sector, which contributes to 70 percent of the region's GDP and employs nearly 80 percent of people in the workforce.

Indonesian President Joko Widodo. /CFP Photo

“I believe the SME community will be the backbone of the ASEAN economy in the next 20 years because we already have experience of a financial crisis in 1997-1998. We know that small and medium enterprises proved to be more resilient than corporations and big companies at that time,” said Economist Josua Pardede.

It is thought that enhancing this sector would significantly strengthen trade and investment opportunities, and would boost market access and pave the way for many local companies to reach the global stage.