Linking Local Agribusiness to Global Markets: A Case Study of Apple-Based SMEs in Indonesia and Their Export Readiness

Abstract

This study examines the export readiness of apple-based small and medium enterprises (SMEs) in Batu City, East Java, Indonesia, within the framework of global value chains (GVCs). While Indonesia is not a major global apple producer, the region’s unique agricultural conditions foster a variety of value-added apple products such as dipped apples, apple chips, apple juice, and apple vinegar. Using a qualitative multiple-case study approach, four SMEs were analyzed through interviews, field observations, and secondary data review. The research applied the Export Readiness Framework (ERF) to assess operational capacity, compliance with international standards, and market capabilities, combined with SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Results indicate that all SMEs possess strong product authenticity and alignment with global healthy lifestyle trends but face constraints in production scalability, export-standard certification, and international marketing. Opportunities lie in expanding to niche markets in ASEAN and other Asian countries with growing demand for healthy snacks and functional beverages. To enhance export readiness, SMEs require coordinated support in certification, production technology, and participation in international trade fairs. This study contributes to the literature on SME internationalization in agribusiness by highlighting the strategic pathways for integrating local producers into global value chains.