The Indonesian Deputy Minister of Industry, Faisol Riza, has called on marketplaces like Tokopedia to prioritize local products. During his visit to Tokopedia's headquarters on January 22, 2025, Faisol highlighted that imported goods still dominate online marketplaces, overshadowing domestic products that often match or exceed their quality.

"Local products are just as good as imports. Marketplaces need to assist teams in vetting every product sold by tenants," Faisol stated. He emphasized that marketplaces should enhance campaigns for local goods, enabling consumers to choose Indonesian-made items over cheaper imports.

One suggested initiative is to tag domestic goods with a “Made in Indonesia” label for easier identification. Faisol pointed to sectors like fashion and footwear as examples where local products often surpass imports in quality, urging marketplaces to grant them greater visibility.

Online marketplaces in Indonesia are a significant driver of digital commerce. According to the e-Conomy SEA 2024 report, Indonesia recorded a Gross Merchandise Value (GMV) of $90 billion (Rp1,420 trillion) in 2024, with $65 billion of that coming from marketplace transactions. This figure is projected to grow to $200–$360 billion by 2030.

"Marketplaces need to support local producers in improving product quality and competitiveness. They must also act as the digital frontlines for promoting domestic industries," Faisol added.

The Deputy Minister’s visit reflects the government’s focus on leveraging the potential of digital trade to empower small and medium-sized enterprises (SMEs). He expressed hope that a stronger emphasis on domestic products could gradually shift public perceptions, reducing the bias toward imports and boosting Indonesia's local economy.

PHOTO: TOKOPEDIA