Opportunities offered by E-commerce for MSMEs

The Project at A Glance

International Economics (IEC) provided technical assistance to the Indonesian government, specifically the Directorate General For National Export Development (DG NED) and Directorate General of Foreign Trade (DGFT) of Indonesia, as well as Indonesian exporters and importers and Indonesian Micro, Small and Medium-sized Enterprises (MSMEs) to enhance the institutional capacity of the private sector and trade associations in the area of trade facilitation by raising awareness of the opportunities offered by e-commerce.

What We Found

This study on e-commerce contains relevant information and insights that can be used by Indonesian MSMEs in planning and executing the expansion of their business operation to different target markets. Five priority sectors were selected, indlucing, foodstuffs, apparel, footwear, handicraft and furniture. As per the findings, the registration process on most eMarketplaces is quite straightforward, with detailed guidance by the platform administrators, however, Indonesian businesses need to pay attention to some specific requirements, such as partnering with a local third party, trademark registration/licence, e-commerce trading licence, application fee structures, and so on for expanding their operations.

Our Strategy and Impact

IEC prepared a study with information, insights, and recommendations on Business-to-Business (B2B) and Business-to-Consumer (B2C) e-commerce and opportunities for Indonesia MSMEs in selected sectors in the global market. The study presented the top B2B and B2C e-Marketplaces suitable for Indonesia MSMEs in the selected sectors, based on the consultant’s evaluation and ranking of the e-Marketplaces aligned with the Indonesia private sector’s interests (such as market entry conditions, promotion tools, support services, amongst others). This was followed by a one-day workshop /training materials for up to 60 members of both the public and private sectors on the study results.
A set of recommendations were also provided to enahance opportunities for Indonesian MSMEs. The immediate measures could focus on raising MSMEs readiness for e-commerce around the six major areas of e-commerce development, including the presentation, marketing, and online presence; inventory management; payment and managing foreign exchange risks; logistics and distribution; return policies (especially for abroad orders); customer feedback and analytics. Some specific measures to be designed and delivered could include: strengthening the roles of Indonesian Trade Promotion Centres (ITPCs) in providing up-to-date information for MSMEs to access potential markets via e-commerce; providing support in identifying eMarketplaces, amongst others.

Our Core Solutions

E-Commerce and digital trade are an increasingly important way for businesses to transact with customers, creating immense opportunities, facilitate innovation, enhance competitiveness, and improve access in local and global markets.
International Economics Consulting provides advice and solutions on some of the latest emerging trends in e-commerce and digital trade such as paperless trading, e-payments, online consumer protection and data protection. We assist governments and businesses worldwide in creating an enabling environment for e-commerce and digital trade, to maximise economic growth and development.

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Project Areas