The Ministry of Trade (Kemendag) is targeting Indonesia’s export growth to reach 7% by 2025 and gradually increase to 9% by 2029. According to Fajarini Puntodewi, Director General of National Export Development, boosting exports is crucial to achieving the national economic growth target of 8%. Speaking at the launch of the BCA Go Export MSME Incubation Program in Jakarta, she noted that exports currently contribute only around 20% to Indonesia’s GDP. To improve this, the Ministry is pushing for expanded export markets and a stronger role for Micro, Small, and Medium Enterprises (MSMEs) in foreign trade.
Despite MSMEs being the backbone of the economy, their export contribution remains low—less than 15%, possibly under 10%, in terms of value. Increasing MSME participation in exports is expected to boost national trade performance and promote more equitable wealth distribution. Kemendag has outlined three major programs: domestic market protection, export market expansion, and MSME export capability development. A key focus is utilizing Free Trade Agreements (FTAs) to access global markets. Indonesia currently has 19 FTAs covering 30 countries, including the recently finalized Indonesia–EU Comprehensive Economic Partnership Agreement (IEU-CEPA). These agreements lower tariffs, even to 0%, enhancing competitiveness. Puntodewi emphasized the Ministry’s commitment to helping businesses, especially MSMEs, capitalize on these opportunities.
