MSME Products Can Dominate Modern Retail Market Through Collaboration
Jakarta (ANTARA) - Indonesian Minister of Trade Budi Santoso has said that products from micro, small, and medium enterprises (MSMEs) can conquer the modern retail market if they adopt partnership and collaboration models, thereby boosting their competitiveness at the national level.
“So we want our large domestic market to be filled with local products. We are not against foreign products or foreign investment — we cannot be. But the question is how local products can sit side by side with foreign products and collaborate,” Budi said at Trans Studio Mall Cibubur on Thursday.
One concrete step taken is the launch of a market access expansion programme, bringing MSME fashion products into modern retail networks.
According to Budi, the success of MSME products entering modern retail is proof that local product quality is now able to compete with international brands filling modern shopping centres.
Furthermore, Budi explained that the government previously implemented a policy requiring modern retailers to absorb at least 30 percent local products. However, that policy has now been changed to a partnership and collaboration model.
This new approach is considered fairer because it does not force retailers to accept products that have not yet met quality standards.
“That is why we changed the policy into partnership or collaboration. This collaboration is balanced between modern retail and local products. It means that if you want to enter modern retail, the requirement is that the product must be of good quality. If it is not of good quality, it cannot enter,” Budi explained.
Budi expressed hope that collaboration between the government and modern retailers will expand further, so that local products not only dominate the domestic market but can also compete in the global market.
“Our MSME players are truly remarkable, keeping up with product developments and following global competition,” Budi said.
Meanwhile, President Commissioner of Metro Department Store Anita Ratnasari Tanjung said the company continues to strengthen its commitment to supporting the development of local products.
This is being realised by increasing the share of MSME products in Indonesia to around 60 percent of the total products marketed across all its outlets.
“It is an honour for Metro Department Store to work with the Ministry of Trade of the Republic of Indonesia, which has launched an initiative aimed at expanding market access for local Indonesian MSME products. By joining, Metro is committed to always prioritising Indonesian products,” Anita said.
In addition, Metro continues to expand its business network from Jakarta to Karawang, Bandung, Depok, Surabaya, Solo, Makassar, and Manado.
Anita expressed hope that collaboration between the government, Metro, and MSME players can continue, so that more local products develop and become innovative and creative.