Local SMEs Empowerment : Entering International Market Through Go Global Program

In 2022, it is reported that Indonesia’s export balance has increased again after being depressed by the Covid-19 pandemic since 2020. According to the data from Indonesia Statistics, the export value in April 2022 reached US$27.32 billion, an increase of 47.76 percent on an annual basis (yoy). From that number, the contribution of exports through SMEs is still considered relatively low. Data from the Ministry of Cooperatives and SMEs stated that as many as 65 million SMEs only accounted for 15 percent of the total value of national exports, still far from other countries, such as Singapore 41%, Thailand 29%, or China reaching 60%. Problems like export legality, funding access, lack of assistance and export-related information are what hinders SMEs to reach the international market.

The similar case also happens in Gunungkidul regency. Despite the huge number of SMEs and many of them have been eligible to export their product, only a small number of Gunungkidul SMEs do the export, yet in may cases they are not the first-hand exporter. Therefore, this is what bases Rumah BUMN Gunungkidul to empower SMEs to export their product through Go Global Program.

This program mainly aims to prepare the selected SMEs to the international market as a first-hand exporter by an incubation program. Through this program, the participants will get trained, mentored, and coached by an export expert. They will be guided to first match their business to the prospective international market, to connect with the international companies, to complete their legal documents, to market their products, and even they will be facilitated to participate in the Export Expo.

Last year, Rumah BUMN Gunungkidul had successfully held the first batch of UMKM Go Global 2022, and has currently opened the second batch entitled Export Incubation 2023. The program is free of charge and it opens for all SMEs, with SMEs in Gunungkidul and Yogyakarta area as its top priority.

The first batch of the program was welcomed by SMEs with great enthusiasm, proven by the big number of SMEs registered. The applicants were then selected by curators. This selection process was quite lengthy and stringent due to many procedures that must be followed. Finally, in 2022, 15 SMEswere curated. Among the selected SMEs were those in the food sector, such as instant herbal drinks, aloe vera drinks, and various chips products, SMEs in the craft sector like bamboo crafts, wooden batik, home decor, and natural stone products, MSMEs in the fashion sector include bags and clothing, and also MSMEs specializing in ornamental plants.

In 2023, the Export Incubation program will be started in September with 15 selected participants, ranging from food to craft sectors. In the next years, this program will continue, as it opens chances for SMEs to continuously grow, develop, and optimize both qualities and quantities of their products.

The followings are the examples of our SMEs’ export products.

Rasane Vera

Rasane Vera is one of the up-and-coming food businesses in Gunungkidul. The owner of Rasane Vera is a young resident of Gunungkidul named Alan Efendhi, who resides in Katongan, Nglipar, Gunungkidul. Rasane Vera is a business that has been nurtured by Rumal BUMN Gunungkidul since 2018. Aloe vera has been cultivated since 2014 and started to be processed in 2015 by Rasane Vera. The products produced include aloe vera chips, nata de aloe vera, aloe vera cube drink, and aloe vera liquid.

KWT Ngudi Sari

KWT Ngudi Sari is a Women Farmers’ Group that produces Mocaf flour or cassava flour, which can be used as an alternative to wheat flour. KWT Ngudi Sari also develops various processed products from cassava flour, such as Mocaf cookies and Mocaf sticks. This SME (Small and Medium-sized Enterprise) is located in the Tanjungsari Sub-district, Gunungkidul Regency.

Alam Home Décor

Alam Home Decor is a SME that produces various handicraft and home decoration products made from natural fibers such as banana leaves, pandan, water hyacinth, rattan, wood, and bamboo. The production house of Alam Home Decor is located in Ngawu Village, Playen Sub-district, Gunungkidul Regency.

Sanggar Brawijaya

Sanggar Brawijaya is an SME supported by Rumah BUMN Gunungkidul, which produces various handicrafts from wood and is painted with unique batik motifs.

• Deling Group

Deling Group is an SME located in Gari, Wonosari, Gunungkidul. The products they produce are bamboo crafts including bamboo panels, bamboo tumblers, bamboo mugs, and bamboo hooks. Deling Group was established in 2010 and has been exporting its products to Australia and America.

KSA Akar Wangi

KSA stands for KerajinanSekarAlam. KSA is one of the small businesses categorized as craft products. KSA’s products are crafted from Vetiver grass and bamboo as their primary materials. Crafts made from Vetiver grass include figures like pandas, sitting elephants, standing elephants, horses, giraffes, crocodiles, etc. Craft products from bamboo include flutes, spinning tops, othok-othok (a traditional musical instrument), and more.

Abrasae Leather & Craft

Leather Crafts and Abrasae Crafts are small-scale industries supported by Rumah BUMN Gunungkidul, located in Bokoharjo, Prambanan, Sleman, Yogyakarta. Abrasae is involved in the fashion industry, and it is a local brand known for combining processed leather with various materials, textiles, and crafts from nature. They produce unique and exclusive products and accept custom orders based on customer requests. Their products are marketed throughout Indonesia