<![CDATA[Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in Indonesia’s economy; however, the competitiveness of local products within digital marketplaces remains relatively weak compared to imported goods. The rapid expansion of e-commerce platforms such as Shopee and Tokopedia has created broader market access for MSMEs, while simultaneously intensifying competition in the digital trade environment. This study aims to analyze the challenges and opportunities that influence the competitiveness of local MSME products within Indonesia’s digital marketplace ecosystem. This research adopts a qualitative descriptive approach. Primary data were collected through semi-structured interviews with relevant stakeholders, including government representatives, MSME practitioners, and digital marketplace observers. These data were complemented by secondary sources such as policy documents, institutional reports, and academic literature. Data analysis was conducted using an interactive analysis model and interpreted through Porter’s Diamond Model framework to examine the determinants of competitiveness. The findings indicate that MSME competitiveness is influenced by several structural factors, including limited digital literacy, constrained production capacity, restricted access to capital, weak branding strategies, and an underdeveloped supporting industry ecosystem. In addition, regulatory gaps and unequal competition with imported products further challenge the position of local MSMEs in digital marketplaces. On the other hand, opportunities arise from increasing consumer awareness of local products, government initiatives such as the “Bangga Buatan Indonesia” campaign, and the utilization of digital marketing strategies. This study concludes that strengthening MSME competitiveness requires improving internal capabilities, enhancing business strategies, and reinforcing the supporting ecosystem through effective policies, infrastructure development, and cross-sector collaboration.]]>
