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FORMOSA NEWS - Malang - MSMEs Struggle to Meet Export Standards Despite Strong Market Potential for Local Snack Products. Micro, Small, and Medium Enterprises (MSMEs) in Indonesia continue to face significant barriers in entering global markets, particularly in meeting international quality standards. A 2026 study by Gleydis Harwida, Sudarmiatin, and Heri Pratikto from Malang State University, along with Evita Novilia from Nahdlatul Ulama University of Blitar, reveals that while MSME operators understand export requirements, they struggle to implement them due to financial and technological limitations. The findings highlight a critical gap between knowledge and capacity, at a time when global demand for natural, locally sourced snacks is rising.
Growing Export Potential Meets Structural Barriers
MSMEs play a vital role in Indonesia’s economy, contributing to job creation, economic growth, and non-oil export performance. Among the most promising sectors is the processed snack industry, particularly products made from cassava, taro, and sweet potatoes. These items benefit from abundant local raw materials, unique flavors, and increasing global demand for traditional and natural foods. However, despite this strong export potential, many MSMEs have yet to penetrate international markets effectively. The research underscores that global competition, strict quality standards, and limited access to resources continue to hold back these businesses.
Inside the Study: Real-World Insights from MSME Operations
The research team conducted a qualitative case study focusing on a single MSME producing various chips, including cassava, taro, and sweet potato products. Data were collected through semi-structured interviews with the business owner, allowing researchers to explore real-world challenges in depth. The analysis used a thematic approach to identify recurring patterns and key obstacles in meeting international standards. This method provided a detailed understanding of both operational and strategic barriers faced by MSMEs attempting to enter export markets.
Key Findings: Three Major Challenges
The study identifies several core challenges that prevent MSMEs from meeting international export standards:
Growing Export Potential Meets Structural Barriers
MSMEs play a vital role in Indonesia’s economy, contributing to job creation, economic growth, and non-oil export performance. Among the most promising sectors is the processed snack industry, particularly products made from cassava, taro, and sweet potatoes. These items benefit from abundant local raw materials, unique flavors, and increasing global demand for traditional and natural foods. However, despite this strong export potential, many MSMEs have yet to penetrate international markets effectively. The research underscores that global competition, strict quality standards, and limited access to resources continue to hold back these businesses.
Inside the Study: Real-World Insights from MSME Operations
The research team conducted a qualitative case study focusing on a single MSME producing various chips, including cassava, taro, and sweet potato products. Data were collected through semi-structured interviews with the business owner, allowing researchers to explore real-world challenges in depth. The analysis used a thematic approach to identify recurring patterns and key obstacles in meeting international standards. This method provided a detailed understanding of both operational and strategic barriers faced by MSMEs attempting to enter export markets.
Key Findings: Three Major Challenges
The study identifies several core challenges that prevent MSMEs from meeting international export standards:
- High Certification Costs. Obtaining certifications such as food safety permits, nutritional testing, and shelf-life validation is expensive. These costs often exceed the financial capacity of MSMEs, leading to delays or abandonment of export plans.
- Limited Production Technology. Many MSMEs rely on basic equipment, which affects efficiency and product consistency. Critical factors such as frying temperature, raw material quality, and processing methods are difficult to standardize without modern technology.
- Insufficient Business Capital. Limited access to financing restricts MSMEs from upgrading equipment, increasing production capacity, and completing certification processes. Capital constraints remain one of the most significant barriers to export readiness.
In addition, maintaining consistent product quality remains a persistent issue. Variations in raw materials and manual production processes can affect taste, texture, and shelf life key factors in international market acceptance.
Real-World Impact: Unlocking Global Opportunities
If these challenges are addressed, Indonesian MSMEs could significantly increase their contribution to global trade. The demand for natural, traditional snack products continues to grow worldwide, offering a strong opportunity for local producers. By bridging the gap between knowledge and implementation, MSMEs can enhance product quality, expand market reach, and strengthen their position in the global economy.
Author Profile
Gleydis Harwida is a researcher in business and economic development at Malang State University, specializing in MSME competitiveness and export strategies.
Dr. Sudarmiatin, M.Pd., and Dr. Heri Pratikto, M.Si., both academics at Malang State University with expertise in entrepreneurship and small business development.
Evita Novilia, S.E., M.M., a lecturer at Nahdlatul Ulama University of Blitar, whose research focuses on MSME management and business sustainability.
Real-World Impact: Unlocking Global Opportunities
If these challenges are addressed, Indonesian MSMEs could significantly increase their contribution to global trade. The demand for natural, traditional snack products continues to grow worldwide, offering a strong opportunity for local producers. By bridging the gap between knowledge and implementation, MSMEs can enhance product quality, expand market reach, and strengthen their position in the global economy.
Author Profile
Gleydis Harwida is a researcher in business and economic development at Malang State University, specializing in MSME competitiveness and export strategies.
Dr. Sudarmiatin, M.Pd., and Dr. Heri Pratikto, M.Si., both academics at Malang State University with expertise in entrepreneurship and small business development.
Evita Novilia, S.E., M.M., a lecturer at Nahdlatul Ulama University of Blitar, whose research focuses on MSME management and business sustainability.
Source
Gleydis Harwida, Sudarmiatin, Heri Pratikto, Evita Novilia (2026), “The Challenges Faced by Local MSMEs in Meeting International Quality Standards for Export”, Formosa Journal of Applied Sciences, Vol. 5, No. 4 tahun 2026.
DOI: https://doi.org/10.55927/fjas.v5i4.44
URL: https://journalfjas.my.id/index.php/fjas
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