Indonesia's Government Boosts the Competitiveness of Craft SMEs

  • 04 Mei 2026 14:56 WIB
  •  Voice of Indonesia

RRI.CO.ID, Jakarta - The handicraft industry sector continues to make a positive contribution to the national economy. Besides being known as a foreign exchange earner, this sector also absorbs a large number of workers.

The Indonesia's Ministry of Industry continues to accelerate the competitiveness of regional handicraft industry players to maintain and improve their competitiveness. Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita explained that diversifying unique products without compromising functionality is a crucial key to becoming more competitive in the eyes of consumers.

"Consumers and buyers of handicraft products now increasingly prefer products that are specific, unique, yet still functional. Therefore, product diversification is key to making Indonesian handicraft products more competitive," Agus said.

According to a press release received by RRI VOI from the Ministry of Industry on Sunday, May 3, 2026, the Minister of Industry stated that the ever-evolving market dynamics require industry players to be agile in adapting and innovating. Diversification of handicraft products is essential so that the work of small and medium-sized industries can reach a wider and more diverse market.

"Product diversification involves horizontally expanding product ranges while maintaining the same raw materials and production processes. This strategy aims to expand market segments and targets without having to build new production lines from scratch," the Minister of Industry conveyed.

The Ministry of Industry's Data and Information Center recorded that exports of the national handicraft industry reached USD 806.63 million in 2025, representing a 15.46 percent increase compared to USD 698.62 million in 2024. This positive trend continued in January 2026, with exports reaching USD 52.38 million, a 19.49 percent increase compared to the same period the previous year.

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