Indonesia’s local products, such as Palembang tenun, Meranti sago, and Gayo coffee from Aceh, show strong potential for expanding into the global export market. These commodities have seen a significant rise in demand, driving Indonesia’s export growth. The government's efforts to promote these products are reflected in export data from the Indonesian Central Bureau of Statistics (BPS), analyzed by LPEI. In 2023, the highest increase in tenun exports was recorded to Saudi Arabia (up USD 12.25 million), the UAE (up USD 10.71 million), Mexico (up USD 5.22 million), India (up USD 4.72 million), and the Philippines (up USD 1.97 million). Tenun fabric exports largely consist of synthetic filament yarn (50.64%), other synthetic staple fiber fabrics (13.77%), and blends of synthetic staple fibers with cotton (8.27%). Sago exports rose 134.40% YoY in 2023, primarily driven by demand from China, Malaysia, Taiwan, the Philippines, and Singapore. The non-GMO and gluten-free nature of sago has appealed to health-conscious consumers.
The Special Mission Vehicle (SMV) Icon program by the Ministry of Finance and LPEI launched the Export Villages initiative in South Sumatra, Riau, and Aceh. This program, aimed at strengthening local exports, supports villages like Palembang’s tenun and Gayo coffee in reaching international markets. LPEI provides training and mentorship to enhance product quality and competitiveness. With 1,545 Export Villages established since 2020, covering 23 export commodities, the program benefits over 134,000 local producers. Notably, Palembang’s tenun village, with a production capacity of 600 fabric pieces annually and revenue of IDR 1.3 billion, targets exports to the U.S., while Meranti's sago village aims to expand its reach to Malaysia and Singapore.
