Strengthening Exports and Downstream Processing Key to Safeguarding National Economic Resilience

Ongoing global economic uncertainty continues to put pressure on various economic indicators, including the exchange rates of developing countries. Under these conditions, strengthening the export sector is considered a key strategy to improve economic resilience while reinforcing Indonesia’s position in international trade. On the other hand, the involvement of national business actors in export activities remains relatively limited. Yet, Indonesia has a vast number of micro, small, and medium enterprises (MSMEs) spread across various regions with diverse product potential. According to 2025 data from the Coordinating Ministry for Economic Affairs, the contribution of MSMEs to total national exports has only reached about 15.7 per cent. This figure remains far below its potential, given that MSMEs account for more than 99 per cent of business actors in Indonesia and absorb around 97 per cent of the national workforce. Observing this situation, Ade Jona Prasetyo, a candidate for Chairman of the Central Executive Board of the Indonesian Young Entrepreneurs Association (Hipmi), stated the importance of encouraging increased national exports by strengthening the capacity of domestic business actors. He believes Hipmi needs to become a collaborative platform capable of helping Indonesian entrepreneurs enhance their competitiveness up to the international market. Jona assessed that Indonesia’s young generation has the ability to take a greater role in the global supply chain. For instance, he mentioned the success of the QRIS payment system, which is now used in several countries and has recorded continuously increasing transaction values. ‘This proves Indonesia can be a pioneer globally. We should be proud to use QRIS,’ Jona said in his statement in Jakarta on Thursday (4/6). According to him, strengthening exports is becoming increasingly important when the rupiah exchange rate faces pressure amid global economic dynamics. ‘Because the rupiah will be strong if our exports are strong. So we must prove it through exports,’ he said. Jona believes increasing export capacity will help strengthen the foundation of the national economy while maintaining long-term exchange rate stability. To achieve this goal, he considers the acceleration of downstream processing to be a primary focus. Through downstreaming, various commodities and resources owned by the regions can be processed into higher value-added products before being marketed. He noted that MSMEs’ contribution of around 61 per cent to Gross Domestic Product (GDP) shows the sector has an important role in driving national economic growth. ‘We can not only be hosts in our own country, but become major players in the international market,’ he said. Besides downstreaming, access to financing is also considered a crucial factor to help MSMEs increase production capacity and expand markets. Therefore, Jona encouraged an increase in the People’s Business Credit (KUR) ceiling so business actors have greater room to develop their businesses. He also argued that local business actors need broader opportunities to be involved in various investment projects entering Indonesia. He stated that the high realisation of national investment could be an opportunity to strengthen the capacity of regional entrepreneurs if it can be aligned with developing industrial and investment needs. ‘Imagine if we could capitalise on that investment through young entrepreneurs in the regions. Hipmi can become the locomotive of economic growth from the regional to the national level,’ Jona said. Furthermore, he assessed that many regions in Indonesia have resource potential that has not been maximised optimally. Through downstream programmes and industrial development based on local potential, various commodities can be processed into products with higher economic value capable of competing in the global market. ‘We will support regional entrepreneurs. A simple example is processing fish into pempek, or processing seaweed into raw materials needed by the food and pharmaceutical industries, and so on,’ he concluded. According to Jona, the combination of export strengthening, downstream processing, financing access, and the involvement of local business actors in investment can form a crucial foundation for creating more inclusive and sustainable economic growth in the future.