MSME Products Can Dominate Modern Retail Market Through Collaboration

Indonesian Trade Minister Budi Santoso stated that micro, small, and medium enterprise (MSME) products can dominate the modern retail market if they implement partnership and collaboration patterns to enhance competitiveness at the national level. “We want our large domestic market to be filled with local products. We are not anti-foreign products or foreign investment; we cannot be. But the question is how these local products can coexist 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, specifically for MSME fashion products entering 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 that fill modern shopping centres. Budi explained that the government previously implemented a policy requiring modern retailers to absorb at least 30 percent local products. However, this 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 do not meet quality standards. “That is why we changed the policy to partnership or collaboration. This collaboration is balanced between modern retail and local products. This means that if you want to enter modern retail, the requirement is that the product must be of high quality. If it is not of quality, then it cannot enter,” Budi clarified. Budi hopes that the government’s collaboration with modern retail players will expand further so that local products not only dominate the domestic market but are also able to compete in the global market. “Our MSME colleagues are truly extraordinary, keeping up with product developments and the existing global competition,” Budi remarked. Meanwhile, Metro Department Store President Commissioner Anita Ratnasari Tanjung said the company continues to strengthen its commitment to supporting local product development. This is realised by increasing the portion of Indonesian MSME products to around 60 percent of the total products marketed across all its outlets. “It is an honour for Metro Department Store, together with the Indonesian Ministry of Trade, to present an initiative aimed at expanding market access for local Indonesian MSME products. With Metro’s involvement, we are committed to always prioritising Indonesian products,” Anita said. Furthermore, Metro continues to expand its business network from Jakarta to Karawang, Bandung, Depok, Surabaya, Solo, Makassar, and Manado. Anita hopes the collaboration between the government, Metro, and MSME players can continue so that more local products develop and become innovative and creative.