SMESCO uses RFID technology to guarantee the authenticity of MSME export products

SMESCO, together with INA Trading, has started applying blockchain-based, RFID technology to MSME products slated for export to European markets, particularly Portugal and the Netherlands, to aid authentication and traceability. RFID chips are embedded in selected MSME products and linked to a blockchain system so that each item has a digital identity or Digital Data Passport. In Jakarta on Tuesday, PERURI Smart Card Director Muchrizal said RFID and blockchain are used to assist in tracking and identifying export products. The data includes information on raw materials, certificates, carbon footprint, and product origin, accessible via the INA Trading mobile app. Products already using the system include wallets, bags, shoes, and scarves from SMESCO-assisted MSMEs marketed in Europe. He noted that the system’s implementation is also part of aligning with new EU regulations regarding product sustainability and supply-chain transparency. The European Union is currently rolling out rules such as the Digital Product Passport, the Carbon Border Adjustment Mechanism (CBAM), and the EU Deforestation Regulation, which require digital product traceability. “To enter the EU market competitively, Indonesian products must comply with key regulations such as the Digital Product Passport under the Ecodesign for Sustainable Products Regulation (ESPR), which has been in effect since 18 July 2024 and will be implemented gradually through 2030,” said Amiranto. He added that other regulations like the EU Deforestation Regulation and the Corporate Sustainability Due Diligence Directive (CSDDD) also require transparency across the supply chain and a product identification system. In its implementation, buyers at Casa da Indonesia in Porto, Portugal, will be able to scan products with the app to view the digital data stored in the blockchain system. The development involves various parties, including PERURI Smart Card, PERURI Digital Security, PUNDI Group, EQBR Korea, the Ministry of Cooperatives and SMEs, SMESCO, BLOCKTOGO, Indonesia In Your Hand, and Mindsground. Through the programme, SMESCO and INA Trading aim for MSME product exports to reach IDR 1.5 billion in 2026.