Identification of Challenges and Benefits of Product Certification on Micro, Small, and Medium Enterprises (MSMEs) in Indonesia Andri Gandhi, Rahmat Nurcahyo, and Djoko Sihono Gabriel Department of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, Depok, 16424, Indonesia gandhiandri@gmail.com, rahmat@eng.ui.ac.id, dsihono@gmail.com Abstract Micro, small, and medium enterprises (MSMEs) in Indonesia are an important factor in the Indonesian economy. The total of MSMEs in Indonesia reaches 64.2 million and MSMEs contribute 60.6% of Indonesia's gross domestic product (GDP). Increasing product competitiveness can be done through the implementation of standards, the fact that MSME products have been standardized on products is that the products are certified (Indonesian National Standard). Total MSMEs that have obtained product certification in Indonesia are only 101 MSMEs out of the total number of MSMEs in Indonesia which reaches 64.2 million. Hence, research is needed identification interest in certification of MSME products in Indonesia according to the challenges and benefits of product certification. To obtain data, this paper undertakes a systemic review of the literature covering the challenges and benefits of product certification on MSMEs in Indonesia to identify how challenges and benefits in the MSMEs, correlates with MSMEs survival improvement in the global competition. The results of the analysis of the obtained factors can be used as a basis for the right strategy to increase the product certification on MSMEs in Indonesia. Keywords Challenges and Benefits, Micro Small and Medium Enterprises (MSMEs), Product Certification, and Literature Review 1. Introduction The growth of the world economic situation which continues to develop towards market openness and economic integration requires Indonesia to continuously strengthen national competitiveness. Increasing the competitiveness of Indonesian national products is closely related to the things mandated by the Law on Standardization and Conformity Assessment, namely increasing the competitiveness of national products using the implementation of standards to compete in the global market (BSN, 2014). The Law states that The National Standardization Agency of Indonesia guides micro, small, and medium enterprises (MSMEs) in implementing standards. MSMEs in Indonesia play a very important and strategic role in the structure of the economy. Apart from playing a role in economic development and employment, MSMEs have been able to make their existence in the Indonesian economy (Bahari and Bestari, 2019). Micro, small, and medium enterprises (MSMEs) in Indonesia are an important factor in the Indonesian economy (Rudiatin and Ramadhan, 2018). The increasing number of SMEs can support the economy to be stronger (Muhammad and Nurcahyo, 2017). Based on data from the Ministry of Cooperatives and SMEs (2018), MSMEs contributed 97% of the total labor in Indonesia and contributed 61.07% to Indonesia's gross domestic product (GDP). The total of MSMEs in Indonesia in 2018 reaches 64.2 million. The position of MSMEs in the Indonesian economy is the solution to the case of the national economy (Rudiatin and Ramadhan, 2018). MSMEs are implemented to boost income by generating a large number of easier jobs, thus enhancing economic growth. They have also been reported to be generally supporting the local industry (Prasetyo, 2020). Proceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management Singapore, March 7-11, 2021 © IEOM Society International 498