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Home Trade & Logistics

Indonesia product diplomacy enters the digital age

Arif Prasetyo by Arif Prasetyo
September 28, 2026
in Asia, Capital Markets, Economy, Finance, Indonesia, Investment, Trade
Reading Time: 4 mins read
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Indonesia product diplomacy is entering a new phase, with Jakarta deploying artificial intelligence and e-commerce to help small businesses reach global consumers and sharpen the country’s international brand.

Deputy Trade Minister Dyah Roro Esti Widya Putri set out the strategy at the FEKDI and IFSE 2026 forum in Jakarta on 25 September. She argued that digital tools help businesses tell the stories behind their products, not simply sell them. That distinction matters for export strategy.

The approach gives Jakarta a broader instrument for trade promotion. It links goods directly to their places of origin, producers and cultural identity. Indonesian coffee illustrates the point well. International buyers already recognise names such as Java, Kalimantan and Sumatra. Those regional associations create an opening to strengthen Indonesia’s wider country-of-origin identity across more product categories.

Technology turns products into stories

Digital channels extend market reach at low cost. Artificial intelligence helps firms present product identity more effectively to foreign buyers. For smaller enterprises, this opens routes to customers that were previously difficult or expensive to access.

Businesses can explain a product’s origin, production methods and distinctive qualities through digital content. That kind of storytelling builds brand equity over time. It also positions Indonesian goods as premium rather than commodity, which supports stronger pricing.

Bank Indonesia confirmed that FEKDI and IFSE 2026 ran from 24 to 26 September at the Jakarta International Convention Center. The programme covered national policy synergy, digital talent development, and cross-border economic and financial connectivity. The event framed technology adoption as a national economic priority, not a sectoral footnote.

For investors, the policy signals demand across several verticals: digital commerce infrastructure, payment systems, marketing technology and export-support services. It also places product branding alongside market access in Indonesia’s formal trade strategy — a shift worth noting.

Can digital training broaden export access for MSMEs?

The government faces a parallel challenge: expanding technology use without widening the digital divide. Dyah Roro was direct on this point. Artificial intelligence must not deepen gaps between businesses or communities. Training for firms and the public must keep pace with technology itself.

Micro, small and medium-sized enterprises sit at the centre of Indonesia’s economy. Digital upskilling therefore connects export growth with broader inclusion goals. The minister specifically linked better digital skills to women’s economic participation — a signal that gender equity is embedded in the trade agenda, not treated separately.

Practical support remains the critical variable. Firms need skills in online selling, content creation and AI-assisted marketing. They also need reliable access to digital payments and cross-border logistics. As Dyah Roro noted, government, business and the public must work together. The stated objective is stronger product competitiveness by 2045.

According to the minister’s remarks at FEKDI, technology-enabled branding could convert regional recognition — already strong for Indonesian coffee and commodities — into durable national export brands. That is the commercial prize the strategy is chasing.

Investors and exporters should monitor the rollout of government training programmes, platform adoption rates among women-led MSMEs, and measurable shifts in export revenue from digitally active small businesses over the next 12 to 18 months.

Quick answers
What is Indonesia’s product diplomacy strategy?

Indonesia is using artificial intelligence and e-commerce platforms to help small businesses promote their goods internationally, linking products to their regional origins and cultural identity to build stronger national export brands.

Which event did Deputy Trade Minister Dyah Roro Esti Widya Putri address?

She spoke at FEKDI and IFSE 2026, held from 24 to 26 September 2026 at the Jakarta International Convention Center, an event co-anchored by Bank Indonesia focusing on digital economy and financial connectivity.

How does digital training connect to Indonesia’s MSME export goals?

The government is rolling out AI and e-commerce training for micro, small and medium-sized enterprises, with a specific focus on women-led businesses, to improve product presentation, reach foreign buyers and lift export revenue ahead of the country’s 2045 development target.

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Arif Prasetyo

Arif Prasetyo

Arif Prasetyo is an economist and columnist from Jakarta with expertise in Indonesia’s energy transition, financial markets, and infrastructure projects. He has advised private and public stakeholders on renewable energy investments, commodities, and regional trade. His writing combines a macroeconomic lens with practical investment insights.

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