Reaping Benefits from International Market, Digital Economy Promotes Micro, Small and Medium Scale Enterprises

Sobe basket, the product of Du’Anyam (source: Du’Anyam)

“Before selling at e-commerce, offering products is limited to people recommended by families or friends. After trying at e-commerce, the market becomes larger, said Martha Puri Natasande, the founder and owner of “Ideku Handmade” business as quoted from Kompas.com.

E-commerce or digital market emerges thanks to flourishing digital technology progress. The big, unlimited digital market is considered to have given chances for Micro, Small and Medium Scale Enterprises to expand their marketing.

As such, the government through the Ministry of Communication and Informatics keep pushing business players, including local micro, small and medium scale enterprises, joining the digital market. The General Director of the Ministry Samuel A. Pangerapan said online business was able to introduce them for the larger market.

“This is the time for us to prepare top products to be sold online,” said Samuel, in the middle of May 2018, as quoted from the Ministry website.

As we know, Indonesia has been pushing the creative economy sector and strengthening micro, small and medium scale businessmen. According to the data from the Ministry of the Cooperatives and Small and Medium Enterprises, there are 58.2 millions of micro, small and medium scale enterprises in Indonesia in 2017. The online platform is already utilized by 3.79 million enterprises from 58.2 million.

The usage of the Micro, Small and Medium Scale Enterprises potential is believed to be able to drive regional development. This is also one of the topics in Indonesia Development Forum 2018. IDF 2018 that takes a theme namely “Pathways to Tackle Regional Disparities across the Archipelago” will take place 10-11 July 2018.

IDF 2018 is initiated by the National Development and Planning Agency or Bappenas and is supported by the Australian Government through Knowledge Sector Initiative which aims at supporting accelerated development in Indonesia to be more equal and more sustainable based on knowledge, experience and fact.

The founder as well as the CEO of Du’Anyam, a social-based micro, small and medium enterprise, Azalea Ayuningtyas, said her company had been using social media to improve brand awareness and promote their products. She said some selling transactions were done via the online system.

Du’Anyam is a social entrepreneurship that plays an active role in solving health problems occurring to mothers and children in East Nusa Tenggara through social economic empowerment. Through Du’Anyam, Ayu and her fellows work with mothers and women in East Nusa Tenggara area to weave papyrus leaves as additional income alternative other than farming.


Thanks to the digital economy, Ayu said, Du’Anyam was targeting international consumers. Thus far, her firm has had business transactions with buyers in Japan, Australia, US and other countries through the domestic market is still larger.

“International market likes handmade products and is eco-friendly,” said Ayu when was encountered the end of May. 

In fact, products from Du’Anyam which originates from Flores, East Nusa Tenggara, are acceptable in the international market. She said products, such as "sobe"— the multifunctional container made from braids—is mostly loved by consumers, either from inside or outside the country.

Yet, the Professor of Management Study of the University of Indonesia Rhenald Kasali said in his press release at the end of May that small and medium scale businessmen must view trend and regulation development in each neighbouring country. He said souvenirs were once sufficient but now production standard of the products must be improved in line with the regulation of the countries to where the souvenirs would be exported. 



“Like bringing wooden souvenirs, wood is sensitive (matter). Country regulation, like Japan’s, is very tight. China and North Korea are probably very strict,” Rhenald Kasali said.**