The potential of palm oil-based micro, small, and medium enterprises\nis enormous. Going forward, there is a need to increase the number of\nMSMEs capable of adding value to palm oil products or commodities.<\/p>\n
Economist Eisha Maghfiruha Rachbini is encouraging palm oil-based\nmicro, small, and medium enterprises to improve their competitiveness\nand boldly enter the international market.<\/p>\n
According to her, the development potential of palm oil-based MSMEs\nin Indonesia is very large, as they can develop various palm oil\nderivative products ranging from food (oleofood), chemicals\n(oleochemical), to bioenergy.<\/p>\n
However, the Programme Director of the Institute for Development of\nEconomics and Finance stated that the contribution of MSMEs to the\nnational export value is currently still relatively low, at around 15\npercent, and therefore needs to be increased going forward.<\/p>\n
\u201cPalm oil commodities can be one of the sectors that drive an\nincrease in the contribution of MSMEs to export value. Moreover, palm\noil is one of Indonesia\u2019s leading export commodities,\u201d said Eisha in her\nstatement in Jakarta on Monday.<\/p>\n
She added that the palm oil downstreaming programme has now produced\nmore than 193 types of derivative products, thereby having a positive\nimpact on the national economy, ranging from an increase in fresh fruit\nbunch prices at the farmer level, expansion of employment opportunities,\nand the creation of a broader chain of economic effects.<\/p>\n
\u201cThe potential of palm oil-based MSMEs is very large. Going forward,\nthere is a need to increase the number of MSMEs capable of adding value\nto palm oil products or commodities,\u201d she said again.<\/p>\n
In addition, she also stated that MSME players need to be\nstrengthened so that they can become part of the global supply chain for\npalm oil-based products.<\/p>\n
She explained that the involvement of MSMEs in the global supply\nchain can drive business transformation, increase productivity, and\nstrengthen product quality in accordance with global standards.<\/p>\n
When MSMEs enter the global market, either as exporters or suppliers\nin the global value chain, she continued, they will produce according to\nglobal market standards and qualifications, thereby encouraging MSMEs to\nbe more efficient in production.<\/p>\n
Eisha believes that palm oil-based MSME players have the opportunity\nto meet these global market standards and qualifications, especially\nwhen reflecting on the success of the palm oil downstreaming programme,\nwhich has significantly increased the added value of products.<\/p>\n
In general, palm oil downstreaming can increase the economic value of\nproducts by between three and ten times, she said, while the added value\nfor high-value products such as vitamin E and certain oleochemicals can\nreach more than 30 times.<\/p>\n
Nevertheless, she hopes that the government will continue to provide\nassistance and support to export-oriented MSMEs, whether in the form of\nstrengthening financial capacity, providing incentives, or technical\nassistance to boost productivity and lower production costs.<\/p>\n
\u201cThe challenge of becoming an exporter is quite significant for\nMSMEs. Moreover, penetrating the global market, which has considerable\nbarriers, is difficult amid the limited financial and production\ncapacity of MSMEs,\u201d she said.<\/p>\n
So far, the government, through the Plantation Fund Management\nAgency, has continued to encourage the development of export-oriented\npalm oil-based MSMEs.<\/p>\n
This is part of efforts to strengthen the national palm oil industry,\nwhile also promoting the development of a sustainable industry.<\/p>\n
Eisha added that the government can strengthen support for\nexport-oriented MSMEs through mapping potential markets, identifying\npotential buyers, and facilitating business matching between MSME\nplayers and business partners in the global market.<\/p>\n
\u201cIndonesian representatives abroad, trade attach\u00e9s, and ITPCs need to\nbe more active in mapping market potential for exporting MSMEs,\u201d she\nsaid.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/palm-oil-based-msmes-urged-to-boldly-enter-the-global-market-1787561714", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }