Preparation of a study on opportunities offered by e-commerce for MSMEs, and associated webinar (Arise + ToR 127)

The Project at A Glance

Micro, small, and medium-sized enterprises (MSMEs) account for 99% of Indonesia’s total active enterprises, 97% of total employment, but only 60% of national GDP and investment. While Indonesia is the biggest consumption market in Southeast Asia (SEA), as businesses grow, so does the need for expansion to other foreign markets. By expanding into foreign markets using e-commerce, Indonesian MSMEs can increase their participation in global trade. The COVID-19 pandemic has had a devastating impact on businesses and trade, but it also nudged businesses to move to an online environment to maintain operations and sales. In a way, the COVID-19 pandemic has made e-commerce an essential economic driver, especially for small firms. Therefore, enhancing MSMEs’ participation in e-commerce is critical to business growth.
This assignment focuses on B2B and B2C e-commerce and the opportunities for MSMEs to increase trade in both local and foreign markets, with a special focus on halal foods and Muslim fashion items.

What We Found

For the pre-selected target EU markets of Spain, Hungary, and Germany an e-marketplace assessment is being conducted specifically for agro-based textiles and clothing and footwear products, mainly focusing on Islamic textile and halal food products. The study will evaluate the eMarketplaces according to factors, such as market entry conditions, promotion tools, and support services, tailored to the specific needs and capacity of Indonesian exporters of textile and food products.

Our Strategy and Impact

Our approach includes a study with information, insights, and recommendations on B2B and B2B e-commerce and opportunities for Indonesian MSMEs in selected sectors in the priority EU markets. The study will present the top B2B and B2C eMarketplaces suitable for Indonesia MSMEs, based on our evaluation and ranking of the eMarketplaces aligned with the Indonesia private sector’s interests. The team also developed a methodology for selecting top markets and eMarketplaces where Indonesian MSMEs can conduct online business. To ensure sustainability and knowledge transfer, Research Assistants were selected from different departments under the Ministry of Trade to join the study. Moreover, a regulatory analysis was also conducted for the selected markets in the EU to understand specific requirements in the halal foods and Muslim fashion sector.

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. Learn More.