Indonesia Boosts SME Fashion, Craft Competitiveness Through Strategy

RRI.CO.ID, Jakarta - The Ministry of Industry continues to strengthen the capacity of small and medium industries (SMEs), particularly in the craft and fashion sectors, amid rapidly evolving market dynamics. These changes not only affect consumer shopping behavior, but also the demand for product value, which continues to evolve alongside shifting lifestyles.

To address this, the Ministry has been consistently enhancing business strategy literacy among craft and fashion SMEs to ensure alignment with current market conditions. In the face of fast-changing trends, industry players must be able to understand and carefully assess product value from multiple perspectives.

“Innovation created by designers, artisans, and producers must align with current market needs,” Minister of Industry, Agus Gumiwang Kartasasmita, said in a statement in Jakarta on Tuesday, April 28, 2026.

The Minister expressed confidence that Indonesia’s fashion designers and craft artisans possess the capabilities, ideas, innovation, and skills to produce high-quality products. However, these strengths must be supported by a solid understanding of business strategy and accurate market research.

“Domestic fashion and craft products are already competitive and can even surpass foreign products. However, the right strategy is needed for these businesses to scale up,” he stated.

The fashion and craft sectors also hold strong export potential that must continue to be optimized. In 2025, export value in these sectors reached USD 806.63 million, marking a significant increase of 15.46 percent compared to the previous year.

Director General of Small, Medium, and Miscellaneous Industries (IKMA), Reni Yanita, added that the Ministry through the Directorate General of IKMA, regularly improves literacy among SME players, including through the Creative Talk program organized by the Fashion and Craft Industry Development Center (BPIFK) in Bali.

During Creative Talk 1, themed “Designing Product Value Based on Market Needs,” held on April 16, 2026, at the BPIFK Auditorium, participants—including academics, practitioners, communities, and SME players—engaged in direct discussions on strategies to design products with higher added value.

“This is part of the government’s strategy to enhance the capacity of SME human resources, particularly in understanding market needs and designing value-added products. Strengthening business literacy and design strategy is essential so that SME fashion and craft products are not only aesthetically strong, but also commercially competitive,” Reni explained.

She noted that Indonesia’s fashion and craft industries hold significant economic potential. However, maintaining consistency in producing relevant products that meet consumer needs remains a challenge for some SME players.

“This series of initiatives is designed as a strategic step to strengthen the competitiveness of Indonesia’s fashion and craft industries through various development programs, such as workshops and continuous technical guidance,” she said.