Understanding the Prospects for Indonesia's SMEs in Apparel Sector to the European Market Through Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU CEPA)

Abstract

Apparel products are an economic subsector that can contribute significantly to Indonesia's foreign trade value. This is in line with the high demand in the global market, especially in the European Union region. However, as one of the countries producing apparel products, Indonesia must also compete with other apparel-producing countries to enter the European Union market. Therefore, this paper examines the prospects of apparel products from SMEs in Indonesia for the European Union market by analyzing domestic and foreign conditions and existing support. Using a descriptive qualitative method, this paper is compiled based on data obtained from document studies. This paper discusses the significance of apparel SMEs in Indonesia and the situation of the apparel market in Europe. The author argues that the existence of the IEU CEPA will encourage the expansion of the apparel product market produced by SMEs in Indonesia to the European Union market. This paper also tries to highlight the role of the diaspora and the Indonesian government in encouraging export-oriented apparel SMEs. This paper is expected to be useful in supporting the progress of apparel SMEs in Indonesia to expand into the European Union market.