Across Indonesia, micro, small, and medium-sized enterprises (MSMEs) are undergoing a notable transformation as many adjust their business models in response to shifting global trade patterns. Rather than focusing solely on local production, a growing number of MSMEs are expanding into the resale of competitively priced goods from China. This transition reflects broader structural changes in the global manufacturing landscape, where China’s large-scale production capabilities and highly efficient supply chains have reshaped how goods are produced and distributed worldwide. For many Indonesian entrepreneurs, reselling imported products has become a practical strategy to remain active and competitive in the domestic market.

The Indonesian government views MSMEs as a vital pillar of the national economy, given their role in employment creation, regional development, and long-term industrial growth. Officials have highlighted the importance of ensuring that this adaptive shift does not weaken Indonesia’s productive capacity. Instead, it is seen as an opportunity to strengthen policies that enhance local competitiveness, improve access to technology, and support MSMEs in moving up the value chain. With the right combination of industrial support, skills development, and market access, Indonesia aims to balance trade openness with the continued growth of a resilient and innovative domestic MSME sector.

Source: https://asiatimes.com/2025/12/indonesias-msmes-are-selling-and-selling-out-to-chinese-goods/