Indonesia boosts Domestic Demand, Exports amid Global Headwinds

Jakarta: Indonesia’s Trade Ministry is rolling out priority programs to strengthen domestic markets and expand exports as global trade faces rising volatility, Trade Minister Budi Santoso said.

The initiatives aim to safeguard national trade performance by boosting competitiveness at home while widening access to overseas markets amid mounting external pressures.

"Global markets are facing escalating challenges, while at home we must strengthen the competitiveness of local products to fill the domestic market and push exports,” Budi said in a statement received in Jakarta on Wednesday, as quoted from Antara.

To reinforce domestic demand, the ministry is prioritizing programs to improve the competitiveness of Indonesian products, seeking to curb import inflows and ensure local goods dominate the home market.

The ministry is also intensifying support for micro, small, and medium enterprises (MSMEs) to penetrate modern retail chains through structured business-matching initiatives.

About 80 percent of products sold in modern retail outlets are now supplied by MSMEs, underscoring the growing competitiveness of domestic products.

National shopping campaigns remain a key driver of consumption. In 2025, Every Purchase Is Cheap (EPIC) Sale recorded nearly Rp55 trillion in transactions, while Hari Belanja Online Nasional (Harbolnas) generated Rp36.4 trillion and Belanja di Indonesia Aja (BINA) Great Sale Indonesia totaled Rp31 trillion.

On foreign trade, the ministry is prioritizing market access expansion by concluding trade agreements. Indonesia finalized five deals in 2025, including pacts with the European Union, Canada, Peru, the Eurasian Economic Union, and Tunisia.

Indonesia has implemented 20 trade agreements, with 15 awaiting ratification and 11 still under negotiation, highlighting an aggressive push to secure broader export markets.

Export facilitation for MSMEs is supported by 46 Indonesian trade offices in 33 countries. In 2025, the MSMEs Bold to Innovate, Ready to Adapt (BISA) Export program connected 1,217 firms, generating transactions worth USD134.87 million.

"We want exporters to come not only from large companies. Medium and small businesses must also be able to export,” Budi said.