Enhancing Protection and Capacity For Micro and Small Digital Enterprises (MSES) Through Facilitation of Product Standardization in Indonesia

Abstract

Objective: The evolution of digital ecosystem has led to highly dynamic developments in buying and selling transactions. A noteworthy recent phenomenon is the objection from Micro and Small Enterprises (MSEs) in Indonesia concerning the upsurge in cross-border trade through e-commerce and social commerce, posing a significant threat to local businesses. Notably, the Ministry of Cooperatives and SMEs (KemenKopUKM) is proposing a revision of regulations related to trade via electronic systems, aiming to incorporate price limits for imported products. Alongside the challenge posed by foreign entrepreneurs, the quality of domestic MSE products is a major concern, hindering their ability to compete with imported counterparts. Thus, it is imperative to enhance their competitiveness. Methods: This research employs dogmatic legal research methods, meticulously analyzing and evaluating legal regulations pertaining to MSEs. Conclusions: The research found that cross-border trade is now an unavoidable reality, necessitating ongoing efforts to enhance the protection and capacity of domestic MSEs. A key approach to safeguarding MSEs involves exerting control over imported products, currently subject to minimal supervision in e-commerce and social commerce. Additionally, enhancing product standards can significantly elevate the quality and appeal of MSEs’ offerings, ultimately boosting their competitiveness.