Indonesian Political, Business & Finance News

Quality Products Alone Not Enough for MSMEs to Survive Digital Competition

| | Source: REPUBLIKA Translated from Indonesian | Economy
Quality Products Alone Not Enough for MSMEs to Survive Digital Competition
Image: REPUBLIKA

Executive Director of Tokopedia & TikTok Shop Indonesia Stephanie Susilo stated that the ability to build a brand and increase visibility is a crucial factor for micro, small, and medium enterprises (MSMEs) to expand their market sustainably. ‘We believe every Indonesian MSME has the potential to grow if supported by the right capabilities, opportunities to be more easily discovered by consumers, and a strong ecosystem,’ she said during a discussion on Thursday (13/8/2026).

According to Susilo, product quality alone is insufficient; business owners must also enhance visibility through content, live shopping, creators, and affiliates. Group Brand Manager Facetology Satrio Arief shared this experience, noting that one of the main challenges in building a local brand is gaining consumer trust while introducing products to a wider audience. He assessed that collaboration with creators can help reach more diverse consumer segments, provided the partnerships are tailored to each creator’s audience characteristics. ‘The role of creators is very important because we cannot introduce something alone. When we move together, it can accelerate the process of reaching more people,’ Satrio said. He added that content and live streaming are not solely for selling but also for explaining products and building interaction with consumers.

A similar experience was shared by Owner of Apelicious Lisa Amalia. The healthy snack brand made from local fruits and vegetables was developed in 2018, but it took time to introduce it to a broader market. Momentum shifted after Apelicious joined Tokopedia and TikTok Shop in 2021. The product, which initially consisted only of apple chips, expanded into various processed fruit and vegetable snacks. ‘Initially, there was a lack of confidence in introducing this product to a wider audience. After joining, we were surprised that within about a month the product became trending,’ Lisa said. She noted that content is a primary method for building consumer awareness, with around 40 percent of Apelicious’ sales coming from video and live streaming also contributing significantly. However, competition for local products does not stop at reaching consumers. Lisa emphasised the need for a strong differentiator and value to avoid being trapped in price wars with non-local products. ‘We prioritise community. Once people trust us, they will share, build trust, and continue to build awareness,’ she added.

From the government’s perspective, Minister of Micro, Small, and Medium Enterprises Maman Abdurrahman assessed that support for MSMEs must go beyond simply opening market access. Business owners need mentoring, capacity building, legal support, and networking to scale up their businesses. Thus, the challenge for MSMEs in the digital era is no longer just about entering online platforms. Business owners must understand how to build a brand, read consumer behaviour, leverage content and creators, while simultaneously strengthening their business foundations so that growth does not stop at merely increasing sales.

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