Trade Minister Budi Santoso said that a rules-based trading system is essential for strengthening small and medium enterprises (SMEs). He made this statement at the BRICS Trade Ministers Meeting on Friday in Jaipur, India, which discussed the theme "Securing the Future: Fostering BRICS Cooperation for A Mutually Beneficial International Trade".
A trading system that provides predictability, fairness, and inclusivity is the foundation for SMEs to expand beyond domestic markets, said Santoso. Such a system will drive SME growth, enhance competitiveness, and broaden participation in international trade.
Santoso said SMEs are a key pillar of developing countries' economies, including Indonesia, but still face various structural barriers. Limited access to financing remains one of the most fundamental challenges, he said. Indonesia is pushing three priorities to expand financing access for SMEs in developing countries: improving financial literacy, expanding digital financial inclusion, and diversifying financing programmes that are adaptive and flexible.
Indonesia also emphasises the importance of building a more resilient global value chain through four main areas. First, strengthening connectivity through the development of efficient transportation, logistics, and digital infrastructure. Second, enhancing trade facilitation through simpler, faster, and more predictable procedures.
Santoso pointed to the automated system for issuing Certificates of Origin that Indonesia has developed, which allows exporters to automatically benefit from preferential tariffs based on trade agreements. The third priority is strengthening domestic capacity through investment in skills development, innovation, and business development. The fourth priority is conducive trade and investment policy through expansion of trade agreements and market access.
Santoso assessed that artificial intelligence and cloud computing are increasingly serving as major sources of value creation and innovation in complex global production networks. Indonesia views BRICS cooperation that promotes interoperability and mutual recognition arrangements as an important step towards building trust and encouraging more effective participation in various markets.
Santoso also highlighted serious challenges facing the current multilateral trading system, marked by declining confidence in the WTO's ability to carry out its role effectively. Fundamental differences in views among member countries have become an obstacle in building consensus and strengthening the multilateral trading system.
Rebuilding confidence in the WTO must become a shared priority, said Santoso, with a focus on strengthening the negotiating function, the development agenda, and creating fair business competition. He emphasised that the development agenda must remain at the core of the WTO agenda, including the issue of Special and Differential Treatment, policy space, and support for economic transformation in developing countries.
Santoso supported the implementation of the Special and Differential Treatment mechanism that needs to become increasingly targeted, evidence-based, and tailored to the needs and development levels of each country. He also highlighted the increasing use of various tariff policies and changes to trade rules that run counter to the spirit of multilateralism, and reminded the need to maintain balance between national policy space and the discipline of global trade rules.
