Key insights and market outlook
The Indonesian government is developing the '1,001 Night Markets' program to expand market reach for UMKM products by utilizing underused government assets as promotional and transaction spaces. This initiative aims to address UMKM challenges including limited market access and low digital literacy. The program aligns with Government Regulation No. 7/2021, which mandates allocation of commercial spaces for UMKM promotion.
The Coordinating Ministry for People Empowerment (Kemenko PM) is formulating a comprehensive strategy to enhance UMKM market penetration through the '1,001 Night Markets' program. This initiative aims to utilize underutilized government assets as promotional and transactional spaces for UMKM products.
Deputy for People Empowerment Coordination, Leontinus Alpha Edison, highlighted that UMKM face complex challenges ranging from basic entrepreneurial mindset issues to crucial problems in expanding market reach. The lack of modern marketing literacy and inadequate digital ecosystem support hinders UMKM's ability to penetrate digital markets and compete in export markets.
The Assistant Deputy for Community Business Marketing, Abdul Muslim, explained that the '1,001 Night Markets' program is designed to leverage government assets that are not being optimally used. This initiative is in line with Government Regulation No. 7/2021 Article 60, which requires ministries, state-owned enterprises, and private entities to allocate at least 30% of their commercial areas for UMKM promotion.
The program is expected to significantly boost UMKM product visibility and sales by providing accessible marketing channels. By creating more opportunities for UMKM to showcase their products in public spaces, the government aims to foster a more inclusive business environment and stimulate economic growth at the grassroots level.
UMKM Market Expansion Initiative
Government Asset Utilization Program