How Street Ads Support MSMEs in Indonesia

The Streets: Where MSMEs Make Their Mark

The streets of Indonesian cities are more than just pathways. They’re bustling marketplaces where small businesses—particularly coffee shops, street food vendors, and local services—come alive. Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the economy, contributing around 99% of all businesses, accounting for roughly 60% of GDP, and employing 97% of the workforce.

Amid slowing growth—just 4.87% GDP in Q1 2025—their role has never been more crucial. Yet, while digitalization grows, only about 40% of MSMEs are connected to the digital ecosystem, leaving the majority still offline. Not every warung owner, tailor, or café manager can afford a polished website, social media campaigns, or e-commerce operations. For them, visibility still begins with something simple and effective: street ads.

Coffee Shops: Front and Center with Street Advertising

If there is one industry that showcases the continued relevance of street advertising, it’s coffee. Indonesia is among the world’s largest coffee producers, and the café scene has exploded over the past decade. From chains like Kopi Kenangan and Janji Jiwa to independent coffee stalls tucked in neighborhoods, the industry now absorbs over 25% of domestic coffee production 
With this competition, how do small coffee shops stand out? Many turn to banners, window decals, or sidewalk signs that speak directly to their local community. A handmade poster announcing “Buy 1 Get 1” placed on a busy corner can bring more walk-ins than a paid social media ad. Even well-designed minimalist boards—displaying today’s brew or seasonal specials—become part of the streetscape, inviting curiosity.

A recent study highlights that Indonesian coffee shops rely heavily on physical branding, with visual designs placed outside their shops serving as the first impression for customers. Whether it’s a bustling Bandung café or a modest warung kopi in Surabaya, the street ad is often the strongest signal that says: come in and try our brew.

Seeing Street Ads in Action

Take the example of a small café in Bandung. The owner invested in a simple A-frame sign placed at a busy intersection, with the message: “Fresh Kopi Gayo – Now Brewing.” Each morning, office workers and delivery drivers spotted it, and curiosity turned into steady sales. There was no need to chase likes or clicks—the physical presence did the work.

Even larger players rely on the same principle. Tokopedia, for instance, amplified the launch of a new feature by installing bold digital billboards along Jakarta’s Sudirman and Thamrin corridors. The bright green visuals couldn’t be ignored, turning daily commutes into moments of brand engagement.

Events like Car Free Day or local pasar malam (night markets) also show the strength of street ads. Vendors display banners or posters in high-footfall areas, creating immediate recognition and trust without needing large marketing budgets.

A charming Indonesian coffee stall with outdoor signage—street ads in their simplest yet most effective form.

Why Street Ads Still Win for MSMEs

Street advertising has distinct advantages for small businesses navigating tight budgets:

Low Cost, High Reach

Posters, banners, or small billboards are relatively cheap but can reach hundreds—sometimes thousands—of people daily in prime locations.

Local Resonance

Ads placed near shops, schools, or transit stops tap into community trust. A sign outside a café feels like a friendly nudge rather than a corporate push.

Simplicity

Unlike digital campaigns that require technical know-how, printing and installing a banner is quick and affordable.

Tactile Trust

Customers trust what they can see and touch. A physical presence validates that a business is real and reliable.

These strengths explain why coffee shops, food vendors, repair services, and tutoring centers are among the most frequent users of street ads. Their businesses thrive on immediate local attention, and street advertising delivers exactly that.

Street Ads in Economic Context

As Indonesia continues to strengthen its MSMEs through training, microloans, and digital programs, the reality remains that challenges such as capital limitations, regulatory complexity, and low digital adoption persist 
In this environment, street ads are not a fallback—they are a smart, context-aware tool. They bridge traditional offline visibility with modern branding, offering MSMEs a reliable and proven way to stay competitive, even as the digital landscape evolves.

From Jakarta to Surabaya, from coffee stalls to tailoring services, street ads remain a lifeline. They help MSMEs capture attention, build presence, and thrive—even in an increasingly digital era. When executed creatively—with thoughtful designs and strategic placement—these ads punch well above their cost.

For MSMEs, especially coffee shops, a banner on the street is more than marketing—it’s a handshake with the community, a signal that says “we’re here, and we’re ready to serve you.”

In a digital age, street ads remain the most human connection between MSMEs and their communities.

If your business is ready to amplify visibility and connect with your local market, contact us now! We’ll help you plan and execute street-level campaigns that are impactful, affordable, and tailored to your neighborhood. Let’s make your brand part of the city’s daily conversation.
 

Pictures Credit: Ascential, Lestari Ads