Government is set to expand its export markets in 2026, targeting the Middle East, South Africa, and Latin America as new growth frontiers in an effort to sustain its trade surplus momentum, Trade Minister Budi Santoso announced on Wednesday, October 22, 2025.

The government has initiated early-stage discussions on two major trade agreements, a free trade area (FTA) with the Gulf Cooperation Council (GCC) and a multilateral deal with Mercosur, the South American trade bloc comprising Brazil, Argentina, Paraguay, and Uruguay.

“These two regions present untapped potential for Indonesian products, from manufacturing and food processing to halal industries,” Budi said in a statement.

“We are determined to diversify our export destinations and strengthen our economic resilience,” he added.

According to ministry data, Indonesia’s export value from January to August 2025 rose 7.72 percent year-on-year, from US$171.86 billion to US$185.12 billion, while the trade surplus grew by 53.3 percent to US$29.14 billion.

The minister said the strategy aims to maintain the positive trend of Indonesia’s trade balance, which has remained in surplus since May 2020.

INACRAFT 2026

Complementing the government’s export push, the creative sector is also gearing up for one of its biggest events, the 26th Jakarta International Handicraft Trade Fair (INACRAFT 2026), to be held at the Jakarta International Convention Center (JICC) Senayan on februari 4-8, 2026.

Organized by the Association of Indonesian Handicraft Exporters and Producers (ASEPHI) in collaboration with Mediatama Event, INACRAFT has long served as a gateway for Indonesia’s craft products to reach global markets.

ASEPHI chairman Muchsin Ridjan said this year’s edition would mark a new phase for the fair, emphasizing digital innovation and international collaboration.

“INACRAFT has become increasingly international. We’ve been invited to exhibit abroad under exchange programs with countries such as Uzbekistan, Iran, the Philippines, Malaysia, Singapore, Poland, Japan, and Korea,” Muchsin said in a press conference held in Jakarta on Thursday, October 22, 2025.

“For 2026, we are exploring opportunities to bring INACRAFT to South Africa, with planned exhibitions in Johannesburg and Cape Town,” he cited.

Muchsin added that INACRAFT 2026 also aims to empower women artisans, who play a vital role in preserving Indonesia’s cultural heritage and driving local economies.

“The spirit of women is the spirit of INACRAFT’s future. From their hands, our culture, creative economy, and national identity will continue to grow and thrive,” he said.

To strengthen the industry’s global reach, INACRAFT 2026 will introduce the Digital Craft Pavilion, a new feature showcasing digital marketing tools, live-streaming commerce, and collaborations with platforms such as TikTok Shop.

“Digitalization is the key to helping our artisans reach international buyers,” Muchsin said.

“By working with e-commerce platforms, we ensure every craftsman has an equal opportunity to be recognized worldwide,” he added.

ASEPHI Secretary-General, Azis Bakhtiar, who serves as Project Officer for INACRAFT 2026, said the event targets transaction values exceeding Rp80 billion(US$4.8 million), excluding long-term trade contracts.

“Last year’s INACRAFT reached around Rp80 billion in transactions. We aim to match or exceed that figure this year, despite economic uncertainties,” he said.

Since its debut in 1999, INACRAFT has evolved into one of Asia’s most influential craft exhibitions, connecting Indonesian artisans with international buyers, investors, and design professionals, a vital component of the country’s non oil export strategy.