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The Ministry of Industry is committed to spur the advancement of Small Medium Business (SMB) national export. Oriented through various strategic policies in order to increase foreign exchange and labor absorption.
Steps taken by the government among others to facilitating the ease of import export (KITE), financing of insurance underwriting, consulting services, as well as the provision of production machinery.
IKM is one of the major contributor to the manufacturing sector in Indonesia. Because of its superiority as a labor-intensive industry sector and suppliers of domestic market needs.
On the occasion, Minister of Industry, accompanying President Joko Widodo during the launch facility policy KITE IKM. Then proceed with Finance Minister Sri Mulyani Indrawati signed the MoU on the Development of SME Export Oriented. She donated machinery and production equipment to IKM metal DusunTumang, Village Cepogo, Boyolali , Central Java.
Small Medium Business
Also present were Minister of Trade Enggartiasto Lukita, Minister of Cooperatives and SMEs AAGN Puspayoga. State Secretary Pratikno, Chairman of the Board of Commissioners FSA Hadad Hadad. And Director General of IKM Kemenperin Gati Wibawaningsih, Director General of Customs, Ministry of Finance Heru Pamungkas, Gubernur Jawa Central Ganjar Pranowo, and members of Commission VI of the House of Representatives ,
The minister emphasized that the potential of SMEs continues to grow. In early 2016, the SME sector’s contribution to the growth of non-oil industry. And increased from 57.84 percent to 60.34 percent in the last five years. Furthermore, SME exports in January-November 2016 reached USD 24.7 billion. So contributing 24.8 percent to the total exports of non-oil and gas industry.
SMEs are also able to absorb the labor force compared to most other sectors. Labor absorption in this sector at the beginning of 2016 reached 97,22 persen. “In 2016, SMEs in Indonesia to grow to 166 thousand units. An increase of 4.5 percent compared to 2015 and have employment for 350 thousand people,” he said.
Regarding KITE, this policy aims to provide facilities for SMEs in importing raw materials. And for the production process will be re-exported as finished products. In addition, SMEs will also be given incentives such as exemption customs and Value Added Tax (VAT). And also sales tax on luxury goods (Tax).
Airlangga said it prefers the existing financing institutions, namely the Indonesian Export Financing Agency (LPEI) or Indonesia Eximbank to encourage the growth and development of SMEs export products. “Rather than establishing new institutions. We better use the existing as LPEI. Scope of LPEI need to be expanded to then be encouraged also to long-term financing is cheaper.”.
The institution will provide support to SMEs through consulting services. One of them in the form of program Coaching Program for New Exporter (CPNE). Which is an ongoing program to pilot new exporters by preparing offenders SMEs through training, exhibitions and guidance. “We want to encourage SMEs to export markets in the hope of a more secure with fewer risks,” said Airlangga.
On the financing side, the agency will facilitate access to financing of SMEs by providing easy, cheap and with a competitive interest rate. For SMEs that need working capital and investment in order to export. LPEI will also invite the Directorate General of Customs and Excise to boost exports of SMEs in the country.
Meanwhile, the President also witnessed the Minister of Industry and the Minister handed over a symbolic form of machinery and equipment production assistance to the perpetrators of Small Medium Business. A total of 62 units of machinery and production equipment IKM.
Such efforts, so that SMEs do not just finish in the sector of production. The upside, if there are investors who want to find business partners, SMEs can take advantage of it directly. “With digitization, the main beneficiaries are SMEs could exchange information and develop the business together. In addition, all can be done and accessed more quickly.”.
In this event, the Ministry of Industry to facilitate some of the exhibition stand for SMEs. The President was accompanied by Minister of Industry and Minister of Finance review the prototype car. He saw the motorcycle coated brass metal production from the Village Gallery Budhi Setya Tumang, Boyolali, Central Java.
Later, Minister of Industry also took time to conduct business meetings with SMEs logamTumang. Metal crafts produced from SME centers Tumang has penetrated the export market. From the dialogue, actors IKM proposed several ideas to the minister of industry, among others. The desire to form a new cooperative. The raw material of copper and aluminum sheets, training design, the formation of the bonded logistics center and packed metal IKM activities as tourism activities.
“We will follow up these proposals, once synchronized national and local government programs. Especially for the design, Mr. President instructed to invite foreign designers especially France and Italy not to compete with foreign products, “said Airlangga.
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