RRI.CO.ID, Jakarta: The craft industry sector continues to make a positive contribution to the national economy. In addition to being a source of foreign exchange, the sector also absorbs a large workforce.

Therefore, the Ministry of Industry, through the Directorate General of Small, Medium, and Miscellaneous Industries (IKMA), continues to accelerate the competitiveness of craft industry players in the regions so they can maintain and enhance their market position.

“Consumers and buyers of craft products are increasingly drawn to items that are specific, unique, yet still functional, and offer distinct added value. Therefore, product diversification is a key strategy to make Indonesian craft products more competitive through innovations that respond to market needs and preferences,” Minister of Industry Agus Gumiwang Kartasasmita said in a statement in Jakarta on Sunday, May 3, 2026.

According to the Minister, evolving market dynamics require industry players to be agile in adapting and innovating. Product diversification is essential to enable small and medium industries to reach broader and more diverse markets.

“Product diversification refers to expanding product variations horizontally while using similar raw materials and production processes. This strategy aims to broaden market segments and targets without having to build entirely new production lines,” he explained.

Data from the Ministry’s Center for Data and Information shows that national craft exports reached USD 806.63 million in 2025, marking a 15.46 percent increase from USD 698.62 million in 2024. This positive trend continued in January 2026, with export value reaching USD 52.38 million, up 19.49 percent compared to the same period last year.

“The potential of the craft industry can still be further optimized. We need to encourage small and medium enterprises to continue innovating to compete in the global market,” Director General of IKMA Reni Yanita conveyed.

To accelerate the competitiveness of regional craft SMEs, the Directorate General of IKMA held a Technical Assistance Program on Craft Product Diversification in Cirebon Regency from April 14–17, 2026. The program is part of the Road to the 2026 National Crafts Council (Dekranas) Anniversary. Cirebon was selected due to its reputation for diverse and high-quality craft products.

Reni added that despite its strong craft identity, SMEs in Cirebon still require support to confidently implement product diversification in line with market trends. Additionally, the use of Artificial Intelligence (AI) can help identify trends and generate new creative ideas.

“SMEs are also required to strengthen their marketing strategies through digital platforms to remain competitive in the domestic market and expand their reach globally,” she said.

The Directorate General of IKMA regularly conducts various programs to enhance the competitiveness of craft SMEs, including technical training and mentoring, facilitation of domestic and international exhibitions, packaging clinics, intellectual property services, machinery and equipment support, product certification, restructuring programs, and the e-smart IKM initiative. The Ministry also collaborates with local governments to develop craft industry clusters across Indonesia.

Meanwhile, Director of Chemical, Textile, and Craft SMEs Budi Setiawan expressed hope that the Cirebon Regency Government will continue to strengthen support for artisans to grow more resilient and independent. This aligns with Regional Regulation No. 1 of 2026 on the Cirebon Industrial Development Plan for 2025–2045.

The regulation outlines three priority industrial pillars: processed food and beverage industries based on agriculture and marine products, craft industries using rattan, wood, and bamboo, as well as the garment and batik industries.