Improving Local Product Standard Expands Export Market: Ministry

Fajarini Puntodewi, the Director General of the National Export Promotion at the Ministry of Trade, emphasized the importance of enhancing the quality of domestic goods to expand market reach and gain exposure to international markets.
"Indonesian products that are exported, when they enter the destination country, must comply with the standards applied there. That is why businesses are expected to align their standards, because when we send goods, they must meet market demand," Puntodewi said.
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She evaluated that Indonesia possesses considerable potential to emerge as a manufacturer and provider of goods in multiple industrial domains.
Hence, it is essential to prioritize education, skill development, and collaboration among key stakeholders, such as government officials and foreign retailers, in order to enable micro, small, and medium enterprises (MSMEs) to understand and engage with standardization processes and global market trends.
"If they can grow further, they can collaborate more deeply, and we can also expand our supply," she says.
“If products already meet international standards, exports will not be limited to Japan but can be expanded to other countries. That is what is highly expected. In this way, both countries will benefit in a win-win situation and see better prospects ahead”, Hirai said.
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President Director of the Japan External Trade Organization Jakarta, Shinji Hirai, emphasized the importance of product standardization in facilitating global trade endeavors. Furthermore, he asserted that business matchmaking initiatives between companies from each nation are anticipated to bolster bilateral ties and stimulate economic growth in both regions.
"Hopefully, this will be useful and help Japanese companies find new suppliers. We hope to develop this project by considering the needs of Japan and Indonesia," Hirai said.
On the otherhand, the Ministry of Cooperatives in Indonesia is advocating for village-based cooperatives to give preference to locally produced goods. This strategy is designed to enhance domestic supply chains and lessen dependence on imported goods, especially in light of escalating economic challenges. Zabadi stated that the Red and White Village Cooperatives, supported by the government, have been established to serve as aggregators for small-scale and extremely small-scale businesses.
Their purpose is to gather products from individual producers and distribute them to broader markets.
He emphasized the importance of incorporating village cooperatives into a comprehensive industrialization framework, expanding their scope beyond basic trade to encompass processing, packaging, and promoting local goods with contemporary production methods. This strategy, according to him, would enhance the worth of rural areas while enhancing the marketability of products originating from villages in the local market. Zabadi further emphasized that cooperatives should play a pivotal role in promoting the expansion of local entrepreneurship to increase production levels, especially for essential everyday items, as a measure to reduce reliance on imported goods.
Village cooperatives not only support local producers but also have the responsibility of guaranteeing public access to subsidized necessities such as liquefied petroleum gas (LPG), rice, and medicines at prices regulated by the government.

