uty-free access to the European Union market is supposed to help Indonesian micro, small and medium enterprises (MSMEs), but trade associations doubt it will be a panacea for boosting exports without tackling costs, compliance and capacity.
MSMEs often struggle to scale up production and maintain consistent quality, with many lacking certified processes, said Dewi Meisari, founder of UKMIndonesia.id.
“Quality can vary when output doubles or triples, from 1,000 units a week to 5,000 or 10,000, with many giving up midway, because they can’t meet demand,” she told The Jakarta Post on Tuesday.
UKMIndonesia.id is a community platform launched by the University of Indonesia in 2017 to empower MSMEs by providing guidance on opportunities, licensing and know-how.
Breaking into the European market “added new layers of complexity,” Dewi added, with buyers often probing details like wages, labor conditions and raw material sources.
“What’s important to note is that building relationships with international buyers can take years,” Dewi noted. “One of our members landed a deal in the third year after repeatedly proving consistent product quality at trade fairs.”
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