Indonesian Political, Business & Finance News

Government and Shopee Launch Strategy to Boost Local MSMEs for Global Export

| Source: CNBC Translated from Indonesian | Economy
Government and Shopee Launch Strategy to Boost Local MSMEs for Global Export
Image: CNBC

The Ministry of Trade, in collaboration with Shopee Indonesia, has launched the Local Product Acceleration Programme to broaden market access and enhance the competitiveness of micro, small, and medium enterprises (MSMEs) amid the rapid growth of digital commerce. Speaking at the launch in Jakarta on Thursday, Trade Minister Budi Santoso stated that utilising digital platforms is a key pathway for local products to strengthen their domestic market presence while simultaneously opening opportunities to penetrate export markets. He noted that the strengthening of local products is a crucial point in the implementation of the Minister of Trade Regulation Number 19 of 2026, which encourages electronic trading platforms to provide greater space for domestically made products to be easily found and chosen by consumers.

Minister Budi emphasised that the goal is not solely to dominate the domestic market but also to push MSMEs to expand their reach internationally. He cited examples of fashion products already being exported to various Asian countries through Shopee’s facilities. Despite the export push, he acknowledged that the domestic market remains vast and must continue to be filled with local products. The government is also tasked with maintaining a healthy electronic commerce ecosystem involving three main elements: sellers, platforms, and consumers. He stressed that local businesses must be given proper space in the digital ecosystem, while platforms must function effectively as marketing venues and provide the best service to consumers.

Balques Manisang, Deputy Director of Government Relations at Shopee Indonesia, outlined that local business owners face challenges ranging from business efficiency and digital marketing skills to promotional costs, operational management, market expansion, and intellectual property protection. To address these issues, Shopee has introduced six integrated support measures under the programme, including business acceleration through vouchers, free digital training, export access expansion, promotional management features, operational support, and intellectual property protection. The platform noted that 4 billion local products have been sold through its local product channel since 2022, with voucher support reaching Rp165 billion in 2025 and surpassing Rp100 billion in the first half of 2026 alone. A monthly Local Business Acceleration Voucher worth Rp500,000 is provided to sellers offering 100% local products, with approximately 130,000 vouchers distributed each month and often claimed within hours.

Beyond promotional assistance, Shopee provides free online training for MSMEs, reaching business owners in 514 districts and cities with over 350 hours of training and around 400 modules covering marketing, promotions, interactive features, advertising optimisation, and online store management. Export support is also directed at opening international markets through Shopee’s export programme, which allows sellers to utilise export facilities managed by the platform or a scheme giving sellers the flexibility to set their own margins, prices, and business strategies. Minister Budi added that export opportunities are not limited to digital platforms, as the Ministry of Trade also runs programmes to connect MSMEs with overseas buyers, such as the ‘UMKM Bisa Ekspor’ programme. Through this initiative, business owners can present their products to Indonesian trade representatives abroad, who then help find potential buyers. Transactions through this programme reached US$134 million last year and US$251 million in the first half of 2026. The ministry also has a local product curation programme that allows selected MSME products to gain access to trade exhibitions, including Trade Expo Indonesia. Minister Budi noted that the existence of digital commerce does not necessarily eliminate physical stores, as many business owners now operate a hybrid model combining online and offline sales.

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