Ministry of Industry Appeals to SME Actors to Keep Quality Products for Keep Consumer Confidence

INDUSTRY.co.id - Sukoharjo, Director General of Small and Medium Industries (IKM) of the Ministry of Industry (KEMENPERIN), Gati Wibawaningsih urged domestic SME players to keep providing the best quality in their products to maintain consumer confidence, especially if marketed through online.

"Buying goods online is good in the eyes, but quality is not visible. If you are a player in e-commerce, they must maintain market confidence," said Gati in Sukoharjo, Central Java, Wednesday (13/09/2017).

Moreover, continued Gati, currently many foreign products circulating in the digital market of the country, so that local products should be more highly competitive. Therefore, the Ministry of Industry has made various efforts for the development of national SMEs in order to compete in the midst of increasingly tight global competition.

"The strategic steps, among others, through increasing the competence of industrial human resources, product quality development, standardization, and facilitation of machinery and production equipment," She explained.

Gati pointed out, the implementation of machinery and equipment restructuring in order to increase production capacity and use of the latest technology for IKM actors. This program is implemented through a 25-30 percent discounting scheme.

"Meanwhile, to gain access to capital, IKM actors are also encouraged to utilize various financing facilities such as KUR, LPEI and other incentives," She added.

Gati is optimistic that IKM Sukoharjo actor has great potential to contribute significantly in spurring national economic growth.

Based on data from the Department of Industry and Manpower of Sukoharjo Regency, the number of SMEs is 17,111 business units with the absorption of manpower reached 156,419 people in 2012-2016. Meanwhile, the investment value of SME Sukoharjo reached Rp2, 5 trillion with a production value of more than Rp9 trillion. Meanwhile, the export realization amounted to USD252 million.

Previously, Minister of Industry of Airlangga Hartarto conveyed that more and more domestic SMEs have successfully penetrated export market or related integrally with big industry.

"We ask the local government to continue to encourage community participation in promoting the development of SMEs," he said.

Kemenperin noted, the number of SMEs grew to reach 165,983 units in 2016 or an increase of 4.5 percent compared to 2015. While in 2017, the number of IKM targeted to reach 182,000 units by absorbing 400,000 workers.

With these strategic programs, Kemenperin will encourage the growth of new entrepreneurs of 5,000 units and the development of 1,200 SME centers by 2017. In 2019, it is targeted to reach 20,000 new entrepreneurs.

In addition, IKM continues to increase significant added value domestically every year. This is seen from the achievements in 2016 amounting to Rp520 trillion or an increase of 18.3 percent compared to 2015. Meanwhile, the value added SMEs in 2014 years about Rp373 trillion to Rp439 trillion in 2015 or up 17.6 percent.