MSMEs Go Global, Traditional Market Digitalization

Good morning, Chief…

Here are today’s key updates on business development, curated by the SUAR Team.

Local MSMEs Ready to Go Global Through Franchising

The government inaugurated the Gerak Bersama 100 UMKM Lisensi Merek Lokal program at PGC East Jakarta, aimed at helping MSMEs move up the ladder through licensing and franchising schemes.
With licensing, MSMEs gain legal protection, clear brand identity, and opportunities to expand into major shopping centers and even penetrate international markets.
License registration can be done online via DJKI e-filing with brand identity documents and logos, with processing taking no more than five working days. MSMEs may continue operating while waiting for the official certificate.
Franchising is considered suitable for MSMEs due to its low risk and efficiency. With most malls in Indonesia targeting the middle-to-lower market, the opportunity for local brand expansion through franchising is wide open.

Read more here.

Product Returns on TikTok Shop Worry Merchants

Starting July 21, 2025, TikTok Shop by Tokopedia will enforce a return policy allowing buyers to send back products under the reason “No Longer Needed,” meaning customers can return items simply because they changed their minds.
Some online merchants expressed concern and disappointment, with several stating they may stop using the platform due to losses from the policy.
Only products labeled “easy to return” are eligible. Returns can be filed within 15 calendar days for Mall category items and within 6 calendar days after receipt for other categories.
Sellers may still reject return requests with valid reasons supported by photo evidence uploaded by buyers. They are given two calendar days to respond.
Experts and associations such as IdEA and Celios welcomed the move as a form of consumer protection that also supports sustainable growth in e-commerce.

Read more here.

Digitizing Traditional Markets

The Jakarta Provincial Government is pushing digitalization across traditional markets. Governor Pramono Anung launched the Market Digitalization Competition to encourage traders to adopt cashless payment systems while fostering cleaner, more orderly, and corruption-free markets.

Key points regarding the program:

Technical and cultural challenges remain, as many traders still prefer cash-only transactions.
Digitalization aims to build a modern, inclusive, and tech-based market ecosystem, while maintaining its role as a space for social, economic, and cultural interaction.
Benefits of digital systems include improved security and convenience.
Market transformation is not just a government agenda but a shared commitment across all economic actors.
Digital adoption for MSMEs should be gradual to ensure effectiveness and avoid widening inequality.

The rollout requires step-by-step introduction of digital payments. Electronic transactions such as QRIS should serve as the foundation for digital payments for MSMEs. This gradual exposure will help traders become more familiar with the system and increase adoption rates.

Read more here.

Danantara Plans Rp130 Trillion Refinery Investment in the U.S.

Daya Anagata Nusantara (Danantara) plans to invest US$8 billion (around Rp130 trillion) to build 17 modular refineries in the United States, as part of the Indonesia-U.S. trade pact.

The investment includes purchases of energy products and technology to support Indonesia’s efforts to reduce its trade deficit and strengthen national energy security through international cooperation.

Refinery projects traditionally require large capital investments and are aimed at long-term profit.

However, refinery investments also carry risks:

Project Risk: Potential delays or cost overruns due to technical or regulatory issues.
Market Risk: Fluctuations in oil and gas prices could reduce refinery revenues.
Operational Risk: Equipment failures or safety issues may disrupt operations and cause losses.
Environmental Risk: Stricter environmental regulations could increase operating costs.

Read more here.

Investment Realization, a Fresh Breeze for Development

The government has set an investment realization target of Rp1,905.6 trillion for 2025, an increase of 11.14% compared to the previous year. By the first quarter, 24.4% of that target had already been achieved.

Amid global turbulence in the post-pandemic era, Foreign Direct Investment (FDI) in Indonesia contributed on par with Domestic Investment (DI). Although FDI in Q1 2025 was lower compared to Q4 2024, the share still provided a positive signal for Indonesia’s investment growth.

In Q1 2025, FDI rose by 12.7% to Rp230.4 trillion, while DI grew by 19.1% to Rp234.8 trillion.

Key sectors consistently supporting both FDI and DI include Basic Metals, Metal Goods (excluding Machinery and Equipment), Transportation, Warehousing and Telecommunications, as well as Mining.

By region, the largest investment realizations came from Jakarta, West Java, East Java, Central Sulawesi, and Banten.

Read more here.

International Conference on Business and Technology, Cardiff 2025: The International Conference on Business and Technology (ICBTC 2025) will take place on July 23–24, 2025 at Cardiff University Business School, Wales, United Kingdom. The event will bring together academics, scholars, and leading researchers to share knowledge and fresh ideas on developments in business and technology.

9th STS Forum ASEAN-Japan Conference, Jakarta 2025: The National Research and Innovation Agency (BRIN) will host the 9th STS Forum ASEAN-Japan Conference on July 24, 2025, in Jakarta. The forum is a collaboration between BRIN, Japan’s Science and Technology in Society (STS) Forum, and the Japan External Trade Organization (JETRO), with support from the Mission of Japan to ASEAN.

STS, originating from Japan, is a forum that facilitates discussions across politics, society, and science. The conference will gather government leaders, academics, industry players, and researchers from global partnerships. The event will be divided into three sessions highlighting key themes. By hosting the forum, BRIN reaffirms Indonesia’s commitment to becoming a knowledge- and technology-based nation.

“The key to success is consistency, not genius. Consistency and persistence are what separate the successful from the mediocre.” — Darren Hardy (Entrepreneur and Author)

Good day, Chief.

SUAR Team