Strengthening the Competitiveness of MSMEs in the Indonesia–Malaysia Border Region

Muhammad Rio

doi:10.37567/sajgibe.v5i1.5650

Muhammad Rio Universitas Sultan Muhammad Syafiuddin Sambas, Indonesia

DOI: https://doi.org/10.37567/sajgibe.v5i1.5650

Keywords: Msmes, Competitiveness, Border Area, PLBN Aruk, Library Research.

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in promoting economic growth, creating employment opportunities, and improving community welfare, particularly in border areas. The Indonesia–Malaysia border region, especially around the Aruk State Border Crossing Post (PLBN Aruk) in Sambas Regency, West Kalimantan, possesses considerable economic potential due to cross-border trade activities, abundant local resources, and diverse regional flagship products. However, the competitiveness of MSMEs in this region continues to face various challenges, including limited access to financial resources, inadequate human capital, low adoption of digital technology, insufficient product innovation, limited business legality, and restricted market access. This study aims to analyze the factors influencing the competitiveness of MSMEs in the Indonesia–Malaysia border area and to formulate sustainable strategies for strengthening their competitiveness. This research employed a qualitative approach using a library research method by reviewing relevant scientific journal articles, books, government reports, regulations, and other academic documents related to MSME development in border areas. The collected data were analyzed using descriptive qualitative analysis, involving data condensation, data display, and conclusion drawing. The findings indicate that strengthening MSME competitiveness requires integrated strategies, including human resource development, digital marketing adoption, local resource-based product innovation, institutional strengthening, improved access to financing, and supportive government policies. Effective collaboration among government institutions, business actors, universities, and local communities is essential to establish a competitive MSME ecosystem capable of maximizing cross-border trade opportunities and contributing to sustainable economic development in the Indonesia–Malaysia border region.

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