Ministry Prepares Regulation to Address Modern Retail Issues

Edhi Kusdiarwoko Dwikuncono, Assistant Deputy for Innovation Support and Business Sustainability at the Ministry of Micro-, Small-, and Medium-scale Enterprises (“ MSME ”), explained that efforts are currently underway to promote the inclusion of MSME products to compete in the modern retail market.

"Yes, we are indeed pushing for that," said Edhi to Hukumonline.

According to him, the 30% allocation for large retailers to accommodate MSME products, as well as the allocation of State Revenue and Expenditure Budget (“ APBN ”) and Regional Revenue and Expenditure Budget (“ APBD ”) for MSME, is hindered by the low production capacity.

MSME products have the competitiveness to stand alongside industrial products in the retail market. However, there are challenges related to quality and limited production capacity. To address this, the Ministry of MSME is developing an ecosystem through the MSME holding program.

Edhi explained that once it’s ready, this program will focus on business development from upstream to downstream. He assured that the necessary regulations for the program, including Regulation of Minister and higher-level rules, are currently being prepared.

“Insha Allah, whatever will be done, whether through Regulation of the Minister or something higher, is also possible,” he added.