Antara News·Indonesia·Monday, November 2, 2026 at 01:38 PM UTC

Modern retail drives poverty alleviation: Trade Minister

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Ricky Prayoga, Yashinta Difa

Bandung, W. Java (ANTARA) - Trade Minister Budi Santoso underlined the strategic role of the modern retail sector, describing it not only as a driver of national economic growth but also as an effective instrument for poverty alleviation and MSME global market expansion.

Speaking at the inauguration of the 2026 National Retail Day in Bandung, West Java, on Monday, Budi noted that government collaboration with the Indonesian Retailers Association (Aprindo) has successfully integrated local goods, which now account for nearly 80 percent of modern retail inventory.

"One of the core objectives of our collaboration within the modern retail sector is to reduce—and ultimately eradicate—poverty. That is why we have implemented several programs designed to help local products gain access to modern retail channels," Budi stated.

According to the minister, modern retail networks serve as a critical gateway for product curation and standardization.

When micro, small, and medium-sized enterprises (MSMEs) successfully penetrate modern retail spaces, it validates that quality standards—backed by organizations like the National Standardization Agency (BSN)—are successfully meeting consumer expectations.

This domestic integration serves as a launchpad for the From Local to Global initiative, preparing small businesses for international competition.

Budi highlighted success stories such as PUKA (Pulas Katumbiri), an MSME crafting accessories made by individuals with disabilities, which leveraged domestic exposure to secure US$40 million in transactions at the Trade Expo Indonesia (TEI), subsequently breaking into the Singaporean export market.

Additionally, traditional Indonesian cracker (kerupuk) exports to the Netherlands have surged to US$10 million, underscoring robust international appetite for local commodities.

Budi pointed to data from TEI 2026—held in Jakarta from October 14 to 18—as clear evidence of growing global interest. Exhibitor numbers grew from 1,500 to 1,873, while international buyer participation climbed from 8,045 to 9,600.

The expo yielded a total potential export transaction value of US$22.094 billion, with MSMEs contributing US$510 million to that figure.

Momentum was further anchored by 426 signed memorandums of understanding (MoUs)—including 168 finalized on opening day alone valued at US$13.2 billion—driven by aggressive year-round virtual and physical business matching initiatives.

To sustain this global reach, the Trade Ministry maintains a network of 46 trade representatives—including Trade Attachés and Indonesia Trade Promotion Centers (ITPCs)—across 33 countries.

Furthermore, Budi noted that ongoing negotiations for landmark trade agreements, such as the Indonesia–European Union Comprehensive Economic Partnership Agreement (I-EU CEPA), are pushing forward to unlock critical European markets for Indonesian staples like coffee and chocolate.

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