International Collaboration, Surabaya–Koso Nippon Supports Small Business Owners

Monday, 12 October 2026

Small businesses play an important role in keeping the local economy moving. From food stalls and clothing brands to handmade crafts, small business owners create jobs and bring new ideas to their communities. In Surabaya, Indonesia, the local government is working with a Japanese organization called Koso Nippon to help micro, small, and medium-sized enterprises (MSMEs) improve their businesses.

The collaboration focuses on reviewing existing business support programs and finding ways to make them more useful for local entrepreneurs. Instead of simply providing assistance, the initiative also looks at how these programs can help business owners become more independent and competitive.

A Partnership Between Surabaya and Japan

Koso Nippon is an independent organization from Japan that focuses on public policy reform, governance, and evaluating programs through community participation. Its collaboration with the Surabaya City Government is part of a wider effort to improve local public services and economic development.

The partnership includes reviewing programs designed to support microbusiness owners. By examining what works and what needs improvement, both sides can help the local government develop better strategies for supporting entrepreneurs.

This approach is important because business owners often face different challenges. Some may need help with product quality, while others struggle with marketing, business permits, or reaching new customers.

Helping Small Businesses Grow

One of the main goals of the program is to help MSMEs move to the next level. For many entrepreneurs, running a small business involves more than making and selling products. They also need to manage finances, understand regulations, build a recognizable brand, and attract customers.

Through business assistance programs, the Surabaya City Government supports entrepreneurs in areas such as business registration, product certification, marketing, and business development.

Legal requirements are particularly important for businesses that want to expand. Having the appropriate business identification number, for example, can help entrepreneurs establish a more formal business operation. Product-related certifications and brand registration can also support consumer confidence and business development.

The local government also facilitates access to marketing opportunities through online platforms, exhibitions, and partnerships with hotels and restaurants.

Digital Platforms and New Markets

Digitalization is another important part of helping local businesses grow. Surabaya has developed e-PEKEN, an online platform that helps local businesses promote and sell their products.

According to the Surabaya City Government, the platform recorded approximately Rp223.2 billion in sales between October 2021 and January 2026, involving 4,852 local businesses.

These figures show how digital platforms can provide additional opportunities for entrepreneurs to reach customers. Instead of relying entirely on physical stores or traditional sales methods, business owners can explore online channels to expand their market.

However, digital tools work best when combined with good products, reliable service, attractive packaging, and consistent marketing.

Why International Cooperation Matters

The collaboration with Koso Nippon also shows how international partnerships can support local economic development. Japan brings experience in public policy and program evaluation, while Surabaya offers practical examples of how local government programs work in the community.

The process also considers feedback from residents and consumers. Their experiences can help officials understand whether existing programs meet the actual needs of business owners and the wider public.

This kind of evaluation can make future support more relevant and effective.

Supporting a Stronger Local Economy

The Surabaya–Koso Nippon partnership is a useful example of international cooperation with a local focus. By reviewing business support programs, improving access to markets, and strengthening entrepreneurs’ capabilities, the initiative aims to help small businesses become more sustainable.

For local business owners, better support can create more room to improve their products, reach new customers, and build stronger businesses. In the long run, helping MSMEs grow can also contribute to employment opportunities and a more resilient local economy.