Strategic Design to Increase MSME Intentions in Exporting with Standards for Global Market Needs

Abstract. The contribution of Indonesia's exports, with the number of business entities dominating at 99.99%, is relatively low at 14.37%. Meanwhile, large business entities achieved an export contribution for Indonesia of 85.63%. Indonesia was predicted to emerge from the middle-income trap phenomenon in 2036, implying that Indonesia will become a high-income country with the fourth-largest GDP in the world. This demonstrates that Micro, Small, and Medium Enterprises (MSMEs) have enormous potential and opportunities to expand international trade. The many factors hindering MSMEs from exporting and high export standards were among the critical factors for the low intention of MSMEs in exporting and choosing to focus on domestic selling. This study used the Principal Component Analysis (PCA) and Interpretive Structural Modeling (ISM) methods to find out the main factors that cause low intentions on the awareness of MSME business actors in exporting by reducing data on the PCA method to perceived barrier and enabler factors. The ISM method helped produce policy formulation and strategic planning by analyzing the influence of the relationship between factors. 13 main barriers and six main enabler factors were obtained; from them, the action plan was designed through appropriate strategic planning, ordered by the priority of barrier factors and enablers, which are known from the partition level in the ISM model based on the results of discussion agreements with experts. Keywords: Export; export barriers; export enablers, msmes, Indonesian mses, principal component analysis (PCA); interpretive structural modeling (ISM)