As global trade faces headwinds from tariffs and geopolitical rifts, Indonesia is betting on digital exports to keep its small businesses growing.

On Thursday (Aug. 7, 2025), Trade Minister Budi Santoso urged micro, small, and medium enterprises (MSMEs) to seize opportunities in Southeast Asia through cross-border e-commerce. Speaking at the launch of ASEAN Online Sale Day (AOSD) 2025, he said digital platforms now make exporting possible without traditional hurdles.

“MSMEs can now export without ever meeting their buyers,” Budi said. “This isn’t about small, one-off transactions; it’s about scale. We want MSMEs to move up.”

Themed “A Click to Prosperity,” this year’s AOSD aims to promote ASEAN-made goods through online shopping events, highlighting MSMEs as regional growth engines.

Budi expressed hope that MSME players will become more familiar with ASEAN markets and seize the momentum of AOSD 2025 to raise the global profile of Indonesian MSMEs.

He also highlighted the strategic role of e-commerce platforms—such as Shopee—in supporting MSME exports that reach markets beyond Southeast Asia.

Digital Pathways to Export

Budi stressed that digital exports are central to the Trade Ministry’s UMKM Bisa Ekspor (“MSMEs Can Export”) program, which has already supported 773 businesses with recorded transactions worth US$90 million (around Rp 1.4 trillion).

He stressed that digital exports differ from ordinary e-commerce sales.

“This isn’t about small, one-off transactions; it’s about scale. We want MSMEs to move up,” he said, emphasizing that the program targets larger-scale, mass-export opportunities.

The push is not only about technological convenience, he added, but also about removing a psychological barrier: exports are no longer the exclusive domain of big corporations.

“We’re urging MSMEs to be more proactive in seeking opportunities, because the market out there is vast,” Budi said.

Exports Without Passports

The Ministry of Trade’s Director General for International Trade (PPI), Djatmiko Bris, said cross-border e-commerce within ASEAN plays a key role in strengthening Indonesia’s exports, particularly for MSMEs.

According to Djatmiko, the government continues to push product marketing strategies, logistics education, and business capacity building through exports.

This includes curation and qualification processes to prepare MSMEs for export markets, as well as leveraging various trade agreements—both bilateral and regional—such as FTAs and SEPAs that Indonesia has in place.

“We understand that e-commerce platforms have become a strategic option for MSMEs to reduce logistics and operational costs while marketing their products more efficiently,” he said.

Through e-commerce, MSME products can reach wider markets and more diverse consumers.

Shopee is also driving this shift. Daniel Minardi, Director of Business Partnerships at Shopee Indonesia, said that since 2019 the platform has exported more than 60 million MSME products to Southeast Asia, East Asia, and even Latin America.

“Just ship to our warehouse—we’ll handle the export process from there,” Daniel explained.

“Collaboration is the key. If we strive together, exports aren’t a dream, they’re a reality,” he added.

Local Hijab Brand Breaks Into Asian Markets

One entrepreneur seizing this opportunity is Februari. An engineering graduate who never planned to be a business owner, she initially set out to sell abayas and hijabs. But strong demand and the specific needs of Muslim women led to Alivia House, a retailer of sharia-compliant modest swimwear.

“Many Muslim women struggle to swim because there aren’t suitable options. The solution is swimwear made from spandex, polyester, and nylon—comfortable, modest, and compliant with pool rules,” she told SUAR.

Armed with a learning mindset and courage, Februari moved onto e-commerce, running live shopping sessions for up to 18 hours a day.

“It was exhausting at first, but the results were remarkable. Our sales reached tens of thousands of parcels per month,” she said.

Exports were once just a dream—until Shopee’s export program opened the door.

“Our products now ship to Malaysia, Singapore, Thailand, and the Philippines. Export revenue has surged nearly 2,000% from last year,” she said.

Today, Alivia House is more than a personal venture. It employs dozens and empowers nearby communities. “With technology and commitment, we believe we can fly Indonesia’s flag on the international stage,” she said.

Honey and Vanilla Are Selling, Too

It’s not just fashion—other local products are also making inroads globally. One example is Erick of PT Suntara Perintis Jaya, a producer of premium vanilla beans.

Although the business is only two years old, he has begun testing exports in what he calls “finding the right playbook.” “Our main market is export, but we realized we need to understand how to play locally before scaling up,” he said.

For Erick, the biggest challenge is the lack of clear export information. “We’re still learning. Even from the ministry, the information available isn’t yet clear enough for MSME players like us,” he admitted.

He welcomed Shopee Export 2.0, which lets MSMEs manage their own storefronts and overseas sales strategies. “In the past, exports had to be in large volumes; now smaller lots are possible. That helps us a lot,” Erick said.

Because his product is niche—serving premium customers such as high-end bakeries—Erick must be careful in choosing destination countries. Still, he believes digital exports can be a shortcut to the right markets.

“Now it’s about finding the market and consistently nurturing it,” he added.

“As for staying only in the local market, the direction isn’t clear—especially with purchasing power under pressure right now,” Erick said.

Challenges on the Export Path

Not every export story ends smoothly. Irwandi, an entrepreneur in herbal foods—honey and traditional jamu—recounted how attempts to sell via global platforms like Alibaba fell short.

“When we tried it, people asked about prices and specifications, then disappeared. No follow-up,” he said.

They tested the platform for three months before pulling back. Even so, the effort wasn’t wasted. His products have now reached 14 countries, including Nigeria, Niger, Togo, Madagascar, and Malaysia. New hurdles, however, have emerged around legality and buyer trust.

“Payments from buyers can be unclear. Fortunately, we’ve had help from the Indonesia Trade Promotion Center (ITPC) to verify their credibility,” he said.

He stressed that MSMEs must be proactive to survive and grow in overseas markets. “We have to keep joining trainings, attend Trade Ministry events, and ask questions. The government is actually quite accommodating if we stay active,” he noted.

Indonesian products such as honey and jamu are seen as having an edge in majority-Muslim markets—thanks to strong halal certification.