TEMPO.CO, Jakarta - The Indonesian Trade Ministry collaborates with the Swedish furniture retail giant, IKEA, to channel products from MSMEs (Micro, Small, and Medium Enterprises). Later, MSME players can showcase their retail products through Teras Indonesia (Indonesian Terrace).
Trade Minister Budi Santoso said the memorandum of understanding aimed to boost the competitiveness of MSME products against imported goods through collaboration.
"Our goal is to create a system that allows our MSMEs to access the large Indonesian market, enabling our products to compete with those available at IKEA," said Budi at the Trade Ministry office on Wednesday, June 4, 2025.
This program has been well-received by MSMEs and the creative economy. One is Indri Lestari from Galleries Abata, a woman from East Jakarta who produces unique Betawi-patterned handbags, hoping her products can be more widely recognized through Teras Indonesia. "Hopefully, this will attract more buyers and introduce more people to Galleries Abata's products," said Indri.
However, the 49-year-old woman from Kramat Jati said it would take a long time to become an IKEA partner. This is because there is a curation process from IKEA and the Trade Ministry. "It seems like they are about to open, and we just received a link to register for entry into IKEA."
If chosen as an IKEA partner, Indri hopes that selling her products will introduce Betawi batik culture through the patterns on her bags.
Since its first store in Alam Sutera, Tangerang, in 2014, PT Rumah Mebel Indonesia, also known as IKEA Indonesia, a subsidiary of DFI Retail Nusantara, has been committed to promoting local products through Teras Indonesia.
The Director of PT Rumah Bumi Nusantara, Handrianus Wahyu, stated in his speech that Teras Indonesia is IKEA's contribution to supporting local products to be more recognized by the wider community.
Teras Indonesia is a special area in every IKEA store where local partners showcase and sell traditional Indonesian products. Since its launch in 2017, Teras Indonesia is the result of a collaboration between IKEA and the Ministry of Cooperatives and Small and Medium Enterprises (SMEs). It has helped over 900 MSMEs showcase and sell their products to IKEA customers.
The signing of the MoU between IKEA and the Trade Ministry focuses on four points for Teras Indonesia this time: providing free marketing areas for MSME partners, product development and marketing, joint publications, and integrating MSME partners into IKEA's global supply chain.
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