Analysis of Opportunities and Threats or Challenges in the International Trade of Handicrafts (A Case Study of Trade Between Indonesia and Japan)
DOI:
https://doi.org/10.65310/p6q3vh78Keywords:
Handicraft Trade, International Competitiveness, Creative Economy, Export Development, Indonesia Japan Trade.Abstract
This study examines the opportunities and threats affecting the international trade of handicrafts between Indonesia and Japan through a qualitative and non empirical conceptual case study approach. The analysis is grounded in the theoretical perspectives of international trade, international marketing, competitive advantage, strategic management, and creative economy. Data were derived from academic literature, government reports, trade statistics, industry publications, and bilateral economic cooperation documents. The findings indicate that the Japanese market offers substantial opportunities driven by demand for authentic cultural products, appreciation of craftsmanship, supportive trade relations, and the expansion of creative economy activities. The analysis also identifies major challenges including intense competition from other exporting countries, strict quality standards, limited export capabilities among small and medium enterprises, weak market intelligence, language barriers, digital capability constraints, and exposure to global economic volatility. The study further demonstrates that sustainable competitiveness requires integrated strategic responses encompassing dynamic capability development, digital transformation, knowledge management, intellectual property protection, entrepreneurship development, and social capital strengthening. The proposed framework contributes to understanding how handicraft industries can achieve long term international competitiveness while preserving cultural value and supporting sustainable economic development.
Downloads
References
Agustina, V., Thamrin, N. R., & Oktoma, E. (2024). The role of English language proficiency in the global economy and business communication. International Journal Administration, Business & Organization, 5(2sp), 82-90. https://doi.org/10.61242/ijabo.24.423
Asriati, N., Syamsuri, S., Thoharudin, M., Wardani, S. F., & Kusuma Putra, A. H. P. (2022). Analysis of business behavior and HRM perspectives on post-COVID-19 SME business sustainability. Cogent Business & Management, 9(1), 2115621. https://doi.org/10.1080/23311975.2022.2115621
Badan Pusat Statistik. (2024). Statistik perdagangan luar negeri Indonesia. Badan Pusat Statistik. https://www.bps.go.id
Beamond, M. T., Schmitz, M., Cordova, M., Ilieva, M. V., Zhao, S., & Panina, D. (2026). Sustainability in business education: a systematic review and future research agenda. Critical perspectives on international business, 22(1), 56-83. https://doi.org/10.1108/cpoib-06-2022-0071
Brogan, G. S., & Dooley, K. E. (2024). Weaving together social capital to empower women artisan entrepreneurs. International Journal of Gender and Entrepreneurship, 16(1), 69-88. https://doi.org/10.1108/IJGE-03-2023-0076
Cateora, P. R., Gilly, M. C., & Graham, J. L. (2020). International marketing (18th ed.). McGraw-Hill Education.
Creswell, J. W., & Poth, C. N. (2018). Qualitative inquiry and research design: Choosing among five approaches (4th ed.). Sage Publications.
David, F. R., David, F. R., & David, M. E. (2019). Strategic management: A competitive advantage approach, concepts and cases (17th ed.). Pearson.
Deb, S. K., Mohanty, P. P., & Valeri, M. (2026). Promoting family business in handicrafts through local tradition and culture: an innovative approach. Journal of Family Business Management, 16(1), 213-231. https://doi.org/10.1108/JFBM-10-2021-0131
Fernandez-Stark, K., Bamber, P., & Couto, V. (2022). Analysis of the textile and clothing industry global value chains. https://dx.doi.org/10.18235/0004638
Ghosh, S., Mahapatra, M. S., Tandon, N., & Tandon, D. (2024). Achieving sustainable development goal of women empowerment: a study among self-help groups in India. FIIB Business Review, 13(4), 477-491. https://doi.org/10.1177/23197145231169074
Himpunan Industri Mebel dan Kerajinan Indonesia. (2024). Refleksi dan harapan industri mebel dan kerajinan Indonesia. HIMKI. https://www.himki.id/post/refleksi-dan-harapan-industri-mebel-dan-kerajinan
Hoque, M. T., Ahammad, M. F., Tzokas, N., Tarba, S., & Nath, P. (2022). Eyes open and hands on: market knowledge and marketing capabilities in export markets. International Marketing Review, 39(3), 431-462. https://doi.org/10.1108/IMR-01-2021-0003
Howkins, J. (2013). The creative economy: How people make money from ideas (2nd ed.). Penguin Books.
Iddris, F. (2025). Entrepreneurship education on international entrepreneurship intention: the role of entrepreneurship alertness, proactive personality, innovative behaviour and global mindset. Journal of Applied Research in Higher Education, 17(2), 640-662. https://doi.org/10.1108/JARHE-09-2023-0424
Jamir, I. (2024). Impact of global financial crisis on Indian handicrafts exports: A breakpoint analysis. Global Business Review, 25(2_suppl), S103-S120. https://doi.org/10.1177/0972150920954612
Japan External Trade Organization. (2024). Japan market and trade information. JETRO. https://www.jetro.go.jp
Kazemi, A., Kazemi, Z., Heshmat, H., Nazarian-Jashnabadi, J., & Tomášková, H. (2024). Ranking factors affecting sustainable competitive advantage from the business intelligence perspective: Using content analysis and F-TOPSIS. Journal of soft computing and decision analytics, 2(1), 39-53. https://doi.org/10.31181/jscda21202430
Kementerian Perdagangan Republik Indonesia. (2024). Perkembangan ekspor nonmigas Indonesia. Kementerian Perdagangan Republik Indonesia. https://www.kemendag.go.id
Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2018). International economics: Theory and policy (11th ed.). Pearson.
Lerro, A., Schiuma, G., & Manfredi, F. (2022). Entrepreneurial development and digital transformation in creative and cultural industries: trends, opportunities and challenges. International Journal of Entrepreneurial Behavior & Research, 28(8), 1929-1939. https://doi.org/10.1108/IJEBR-11-2022-008
Massa, S., Annosi, M. C., Marchegiani, L., & Messeni Petruzzelli, A. (2023). Digital technologies and knowledge processes: new emerging strategies in international business. A systematic literature review. Journal of Knowledge Management, 27(11), 330-387. https://doi.org/10.1108/JKM-12-2022-0993
Ministry of Foreign Affairs of Japan. (2008). Agreement between Japan and the Republic of Indonesia for an Economic Partnership (IJEPA). Ministry of Foreign Affairs of Japan. https://www.mofa.go.jp/region/asia-paci/indonesia/epa0708.html
Nazara, D. S. (2025). Marketing strategy innovation: Enhancing competitiveness and differentiation of local products in the global market. Oikonomia: Journal of Management Economics and Accounting, 2(3), 101-112. https://doi.org/10.61942/oikonomia.v2i3.358
Permatasari, A., Dhewanto, W., & Dellyana, D. (2023). The role of traditional knowledge-based dynamic capabilities to improve the sustainable performance of weaving craft in Indonesia. Journal of Enterprising Communities: People and Places in the Global Economy, 17(3), 664-683. https://doi.org/10.1108/JEC-11-2021-0156
Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.
Rahman, M. M., Dana, L. P., Moral, I. H., Anjum, N., & Rahaman, M. S. (2023). Challenges of rural women entrepreneurs in Bangladesh to survive their family entrepreneurship: a narrative inquiry through storytelling. Journal of Family Business Management, 13(3), 645-664. https://doi.org/10.1108/JFBM-04-2022-0054
Rezazadeh, J., Bagheri, R., Karimi, S., Nazarian-Jashnabadi, J., & Nezhad, M. Z. (2023). Examining the impact of product innovation and pricing capability on the international performance of exporting companies with the mediating role of competitive advantage for analysis and decision making. Journal of Operations Intelligence, 1(1), 30-43. https://doi.org/10.31181/jopi1120232
Saputro, T. A., Firdaus, W. T. M., Rahmawati, A. R., & Safly, A. (2025). Intellectual Property Tourism in Indonesia: Environmental Conservation and Regional Economic Strengthening. Journal of Law, Environmental and Justice, 3(1), 134-159. https://doi.org/10.62264/jlej.v3i1.119
Tapfuma, M. M., Musavengane, R., & Magwaza, R. (2024). The role of creative tourism through arts and crafts in promoting inclusive tourism in Zimbabwe. Journal of Tourism and Cultural Change, 22(1), 1-20. https://doi.org/10.1080/14766825.2023.2231401
Wondirad, A., Bogale, D., & Li, Y. (2022). Practices and challenges of developing handicrafts as a core tourism product in Chencha and Konso, southern Ethiopia. International Journal of Cultural Policy, 28(3), 306-326. https://doi.org/10.1080/10286632.2021.1938560

















