The Ministry of Industry (Kemenperin) continues to develop the capacity of small and medium industry (SMI) players, especially in the craft and fashion sectors, amid rapidly changing market dynamics. These changes affect not only consumer shopping behavior, but also the demand for product value, which keeps evolving with changes in people's lifestyles.
Kemenperin therefore continuously strengthens craft and fashion SMI players' literacy in business strategies relevant to market conditions. Moreover, in facing trends that change very quickly, industry must be able to understand and carefully see product value from various angles.
“Product innovations created by designers, craftsmen and producers must match current market needs,” Minister of Industry Agus Gumiwang Kartasasmita said in a statement in Jakarta on Tuesday (28/4).
The Minister of Industry believes Indonesian fashion and craft designers and craftsmen have the ability, ideas, innovation and skills to produce high-quality products. However, these abilities need to be supported by an understanding of business strategy and proper market research.
“Domestic fashion and craft products are already worthy of standing alongside, and can even surpass, foreign products. But the right strategy is needed for these businesses to move up a class,” the Minister of Industry said.
The fashion and craft industry sector also has great export potential that needs to be further optimized. In 2025, the sector's exports reached USD 806.63 million, a significant increase of 15.46 percent from the previous year.
The Director General of Small, Medium and Miscellaneous Industries (IKMA), Reni Yanita, said Kemenperin, through Ditjen IKMA, routinely improves the literacy of craft and fashion SMI players, including through Creative Talk events held by the Fashion and Craft Industry Empowerment Center (BPIFK) in Bali.
At the Creative Talk 1 session titled “Designing Product Value According to Market Needs”, held on 16 April 2026 at the BPIFK Auditorium, participants consisting of academics, practitioners, communities and SMI players discussed product design strategies to achieve higher added value.
“This is the government's strategy for increasing the human resource capacity of SMI players, especially in understanding market needs and designing value-added products. Strengthening business literacy and design strategy is absolutely necessary so that SMI fashion and craft products are not only aesthetically superior, but also commercially strong,” Reni said.
According to her, Indonesia's fashion and craft industry has enormous economic potential. However, consistently producing products that are relevant and match consumer needs remains a challenge for some SMI players.
“This series of activities is designed as a strategic step to strengthen the competitiveness of Indonesia's fashion and craft industry through various development programs, such as ongoing workshops and technical guidance,” she added.
In the presentation session, keynote speaker I Made Surya Prayoga discussed the concept of Value Proposition Design. He stressed that many businesses still focus on product features, rather than the real benefits customers experience.
For example, in the fashion sector, a better approach is not simply to sell cheap clothes, but to offer workwear that is comfortable yet stylish for young professionals.
Meanwhile, the Head of the Fashion and Craft Industry Empowerment Center (BPIFK), Dickie Sulistya Aprilyanto, said research shows that one of the main causes of business failure is a mismatch between the products produced and market needs.
“This confirms that business success depends not only on production capability, but also on the ability to understand and respond to customer needs. Craftsmen's creativity needs to be aligned with market needs,” he said.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia