New Year, New Standards: Driving Indonesian MSMEs to Scale Up in 2026

What a way to kick off the year! On January 1, 2026, I had the pleasure of joining Shiera Theresia and Fahmi Andryanon the special 4th-anniversary broadcast of Jendela Negeri at TVRI. Amidst the New Year celebrations, the conversation took a serious yet optimistic turn toward the backbone of our economy: our Micro, Small, and Medium Enterprises (MSMEs). As a researcher from BRIN, I was invited to share insights on how our local businesses can stop merely “surviving” and start “scaling up” to compete on the global stage.


The “Micro Trap” and the Mindset Shift

One of the biggest hurdles we discussed is what I call the “Micro Trap.” Indonesia has over 60 million MSMEs, but many remain stagnant at the micro-level for decades. Often, this isn’t just about a lack of capital—it’s a mindset. Many entrepreneurs are comfortable once they can provide for their families, fearing that “scaling up” only leads to complex risks like higher taxes or complicated managerial duties. However, to be globally competitive, we must shift this perspective. Scaling up isn’t just about personal profit; it’s about creating more jobs and contributing to the nation’s fiscal health.

Digital Literacy vs. Data Literacy

While internet penetration in Indonesia has reached nearly 90%, being “online” is no longer enough. During the segment, I emphasized the transition from basic digital literacy (knowing how to use the tools) to data literacy. It’s about understanding how to read market trends and positioning products for an international audience. Interestingly, data shows that digital literacy in Eastern Indonesia is often higher in terms of ethics and information processing. The real challenge remains inclusive logistics—ensuring a seller in Papua can reach a buyer in Jakarta without the shipping cost exceeding the product price.

Innovation from Gorontalo to Bali

The broadcast featured inspiring reports from the field that proved innovation is thriving in the regions:

  • Gorontalo’s “Karawo”: We saw how traditional embroidery is being modernized using rice-water coloring techniques, allowing for custom, high-fashion pieces that appeal to younger, digital-savvy generations.
  • Bali’s Artistic Resilience: In Gianyar, studios like Cakra Art are blending traditional roots with contemporary styles, ensuring that Balinese art remains a “New Tradition” that resonates with international tourists and digital marketplaces alike.

Collaboration as the Engine of Growth

In 2026, the era of “solo careers” in business is over. The path forward for MSMEs is collaboration. Whether it’s through mentorship from BUMNs, university incubators, or Gen Z “digital natives” helping older generations navigate social commerce, we need a “Gotong Royong” ecosystem. At BRIN, we are committed to providing research-based products and incubation programs to ensure these businesses have the scientific and technical edge they need to stand tall next to global competitors.

Key Takeaways for 2026:

  • Beyond E-commerce: Use digital platforms for branding and data collection, not just as a digital storefront.
  • Financial Literacy: Professionalize management by separating personal and business finances early on.
  • Partnerships: Seek “Join Ventures” or partnerships to mitigate the risks of scaling up.

The energy in the studio was a perfect reflection of the potential waiting to be tapped across the archipelago. If our MSMEs can pair their deep cultural roots with a willingness to learn and adapt, 2026 will be the year Indonesia truly becomes the host of its own market. Happy New Year, and let’s make this the year of scaling up!


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