Bali, Indonesia- September 7, 2013 (Agenda Item # 8.14) Bali, Indonesia- September 7, 2013 (Agenda Item # 8.14) Indonesian Experiences to Empower SMEs to International Market DR. Sjarifuddin Hasan State Minister of Cooperatives and SMEs The Republic of Indonesia 1

1.Background. 2.Challenges. 3.Strategic approaches. 4.Programs to Expand to International Market 5.APEC cooperations. Content 2

1.All SMEs in the region will be facing free trade and investment. 2.Enhancing access to global market is to ensure full participation of SMEs in the regional business engagement. 3.Strategic approaches and collaborative efforts will enable SMEs to adapt themselves in sistematic ways and in timely basis to liberalized market. Background 3

1.SMEs development gap among member economies. 2.SMEs face severe market competition resulted from trade liberalization (ASEAN 2015, APEC 2020). 3.On going economic crisis experiencing by SMEs’ destinated export market. 4.Limited access to productive resources (finance, technology, human resources, etc). 5.Relatively low in capacity and productivity give raise to low competitiveness. Challenges 4

1.Strengthening SME competitiveness 2.Providing financial support for international market 3.Establishing trade infrastructures Strategic Approaches 5

a)Promoting industrial clustering b)Promoting business networking c)Promoting business partnership d)Promoting creative and innovative SMEs Strengthening SME competitiveness 6

1.Trade financing through Exim Bank 2.Export guarantee and insurance by AEI (Indonesian Export Insurance) 3.New program innitiative so called National Interest Account (NIA) Financial Support 7

1.Trade promotion center at national, provincial and district level 2.Marketing service agency for SME (LLP KUKM) 3. Trading houses both belong to government and private sectors Trade infrastructures 8

1.Operated since Promote SMEs expand to international market, through networking with other intermediary institutions (IKEA, ITPC, JETRO, KOTRA, etc) 3.Already export SME products to Hong Kong, Turkey, Rusia, and Austria. 4.Has the house for SME products for all Provinces 5.Total tenants served 1,324 SMEs 6.Total visitors every year are around 60 thousand Marketing Service Agency for SME 9

1.E-marketing through web base facilities (trading board) 2.Product exposition 3.Trade mission 4.Business forum 5.Business partnership/matching Programs to Expand to International Market 10

1.SMEWG to formulate concrete strategic plan on APEC cooperation to expand to international market 2.Sharing market opportunity among member economies. 3.Provide support of initial market entry for SMEs 4.Establish collaboration among SMEs promotion centers. 5.Conducting annual exhibition and business forum event in the margin of SMEMM APEC Cooperation 11

Thank You 12