UNAIR NEWS – Universitas Airlangga Alumni Association (IKA UNAIR) US Chapter and the Embassy of the Republic of Indonesia (KBRI) in the United States held a webinar on “Opportunities and Challenges of Exporting Indonesian MSME Products to the United States Market” on Sunday, December 30, 2021. The webinar in Zoom introduced the potential and challenges of MSMEs in entering the United States market in 2022.
In his remarks, Rosan Perkasa Roeslani, as the Indonesian Ambassador to the United States (US), said that MSMEs are the backbone of the Indonesian economy. However, the contribution to exports is quite low so far, only around 13-14%. He added, in 2021, the US market in terms of trade has increased to $13.4 B. It is the highest figure so far.
“Indonesia’s total trade is approximately $30 billion. Hopefully, it will reach $60 billion in 2024. Of course, everything can be done if there is a cooperation between all parties. We at the Indonesian Embassy are ready to facilitate MSMEs so that their role will continue to increase,” he said.
He also added that in encouraging trade and investment, the Ministry of Foreign Affairs created a program called “INA Access”. Hopefully, with this program, the community will be able to explore existing markets.
Adik Dwi Putranto, as Chairman of the East Java Chamber of Commerce and Industry (KADIN), said that the trend of Indonesia’s export growth to the US has continued to increase since 2016. It has made the US the second-largest export destination after China.
“The US trade war with China, which has hampered the entry of Chinese export products to Indonesia, provides an opportunity for Indonesian export products to enter the US market. Moreover, with the extension of the exemption from import duty rates to Indonesia, these facility paves the way for Indonesian MSMEs to enter the US,” he explained.
The chairman of the East Java Chamber of Commerce and Industry added that Indonesian fashion products, including apparel, jewelry, shoes, and bags, are products that Indonesia relies on. Furthermore, furniture, food, and beverages are also believed to be able to compete in the US market.
“The high cost of shipping to the US is one of the challenges for exporting MSME products to the US market. High-quality standards and regulations for imported goods in America are other obstacles for MSME practitioners. We (Kadin, ed ) are working on accelerating licensing, especially for food and beverages from within the country, so that it can shorten the time for quality licensing with FDA (Food and Drug Administration) standards,” he added.
Poor management and human resources and inconsistency in the quality, capacity, and continuity of MSME products are also significant challenges for MSME exports. In dealing with this, Adik said, the East Java Kadin facilitated MSME practitioners by establishing the Kadin Institute as a place for training, coaching, and mentoring MSMEs to support export development.
“Furthermore, the East Java Chamber of Commerce and Industry has also prepared the Surabaya Export Center and the Diaspora Business Center Office, which will serve as a forum for cooperation in helping Indonesian MSMEs enter the American market. We hope that it will continue to increase exports, especially to the US,” he concluded. (*)
Author: Alysa Intan Santika
Editor: Nuri Hermawan
