Indonesia urged to use trade deals to boost UMKM exports

Indonesian legislator Sarifah Suraidah Harum called for the government to strategically implement recently ratified international trade agreements to expand export opportunities for micro, small, and medium enterprises (UMKM).

Harum stated that the swift ratification of four international trade pacts should serve as a catalyst for increasing exports. She emphasized that these agreements must be followed by concrete implementation strategies to ensure their benefits reach businesses and the national industry. "We hope the results of accelerating Indonesia's trade with several friendly countries must be followed by measurable implementation strategies so that the benefits are truly felt by the business world, UMKM actors, and the wider community," Harum said.

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We hope the results of accelerating Indonesia's trade with several friendly countries must be followed by measurable implementation strategies so that the benefits are truly felt by the business world, UMKM actors, and the wider community.

The legislator believes that strengthening trade cooperation with ASEAN nations, China, and the Eurasian Economic Union (EAEU) can significantly broaden market access for Indonesian products. Sectors like manufacturing, agriculture, fisheries, plantations, and UMKM stand to gain, potentially boosting foreign exchange earnings and creating jobs. However, Harum also cautioned the government to prepare for increased competition from imported goods by implementing policies that safeguard the competitiveness of domestic industries.

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So that UMKM are not just a complement in the international trade chain, but are able to appear as competitive main actors.

To maximize the benefits of these trade agreements, Harum urged the government to bolster the domestic industrial base. This includes enhancing productivity, improving logistics efficiency, simplifying licensing procedures, accelerating trade digitalization, and providing support to UMKM. She also called for expanded access to financing, certification, export promotion, and capacity building for businesses. "So that UMKM are not just a complement in the international trade chain, but are able to appear as competitive main actors," she stated.

Harum encouraged the government to develop a comprehensive roadmap for implementing the trade agreements, involving relevant ministries, state-owned enterprises, regional governments, business associations, and industry players. She asserted that the success of these agreements should be measured not only by the speed of ratification but also by the tangible benefits received by national businesses. "The ratification of four international trade agreements must be the starting point for strengthening Indonesia's economic competitiveness in the global market," she concluded.

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The ratification of four international trade agreements must be the starting point for strengthening Indonesia's economic competitiveness in the global market.