Indonesia Pushes for Stronger Trade Systems to Boost MSMEs Globally

Indonesian Minister of Trade Budi Santoso is advocating for a stronger, rule-based international trade system to enhance the global participation of Micro, Small, and Medium Enterprises (MSMEs). Speaking at the BRICS Trade Ministers' Meeting in Jaipur, India, on August 7, 2026, Santoso highlighted that a predictable, fair, and inclusive trade environment is crucial for MSMEs to improve their competitiveness and expand their market reach.

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MSMEs are one of the main pillars of the economy of developing countries, including Indonesia. However, MSMEs still face various structural obstacles. Limited access to financing is still one of the most fundamental challenges.

Santoso acknowledged that MSMEs, a vital economic pillar in developing nations like Indonesia, still face significant structural barriers, particularly limited access to financing. To address this, Indonesia proposed a three-pronged approach: enhancing financial literacy among MSMEs, expanding digital financial inclusion, and diversifying funding programs to be more adaptive and flexible.

The minister also stressed the importance of building more resilient global value chains by strengthening domestic capacities. This involves focusing on four key areas: connectivity, trade facilitation, domestic capacity building, and supportive trade and investment policies. Improved infrastructure for transportation, logistics, and digital connectivity is essential to better link businesses with regional and global markets.

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For the past week, Indonesia has encouraged the development of infrastructure, logistics, and digital connectivity that is efficient so that business actors are increasingly easily connected to regional and global markets.

Furthermore, Indonesia is pushing for simplified trade procedures to expedite processes and reduce costs, thereby encouraging greater participation in global production networks. The country has developed an automated system for issuing Certificates of Origin (SKA) to help exporters automatically benefit from preferential tariffs under various trade agreements. Investments in skills development, innovation, and entrepreneurship are also crucial for increasing the value-added of products and services, while expanding trade agreements aims to deepen integration into regional and global value chains.

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To improve trade facilitation, Indonesia has developed an automated system for issuing Certificates of Origin (SKA). This system allows exporters to automatically utilize preferential tariffs based on Indonesia's various trade agreements, so that Indonesian products can compete more effectively in the international market.