Minister Puspayoga: KITE Facility Increases SME Export

INDUSTRY.co.id - Gianyar - Ease of Import Export Destination Program (KITE) launched in January 2017 by President Joko Widodo has facilitated 37 SMEs. Of the 37 SMEs that received KITE facilities, as many as 13 business actors came from Bali and three were silver craftsmen from Celuk. It is expected that this program will improve SME export products.

"The KITE program is a government program to improve people's economy. This program provides ease of imports so as to lower the cost of production, which ultimately affects the increase in production volume and competitiveness, "said Minister of Cooperatives and SME Puspayoga at the opening Celuk Jewelery Festival 2017, Friday (13/10) in Celuk Village, Gianyar Regency, Bali .

Puspayoga said the government's efforts to improve the populist economy are done through a financing scheme with low interest rates. For example, the Ultra Micro Credit program in cooperation with the Ministry of Finance provides credit of Rp 10 million with 4% interest which is channeled through cooperatives. In addition, the People's Business Credit (KUR) with interest of 9%, financing through LPDB with 0.3% interest for cooperatives and 0.2% for the real sector. It is said, the implementation of cheap interest financing has had an impact on the economic waveguide populist.

Puspayoga asserted with the financing schemes that the achievement of economic growth with the equity of welfare will be achieved. "Welfare is the government's priority program, so that the schemes are made for empowerment," Puspayoga said.

The cooperative has also been recognized by economist Joseph Stiglitz as an alternative to providing economic equity to the public. Affirmed cooperatives in Indonesia have also experienced a visible growth from the increase in GDP of cooperatives to 4% in 2016 from 1.71% in 2014.

The Minister also explained that amid the sluggish global economy, Indonesia's economic growth is still ranked third among the G20 countries. India's economic growth of 7.9%, China 6.7%, and Indonesia 5.01%. He believes Indonesia has tremendous potential to achieve a leap in economic growth and equity.

"If high growth means high job opportunities, unemployment is down, poverty decreases, ratio gap is lower," he continued.

Director General of Customs and Excise Heru Pambudi said KITE facilities provide exemption of import duties and taxes for raw materials for SMEs because the products will be exported. Of the 37 SMEs that received the KITE facility, it produced a production value of Rp 101.2 billion and absorbed over 2,100 workers. The value of imports made approximately US $ 452 thousand and export potential is estimated to triple.

"We hope that SMEs who get KITE facilities will jump 10-fold. We are ready to assist SMEs in facilitation so that the competitiveness of SMEs increases and has an advantage in ASEAN, "said Heru.

Gianyar Regent AA Gede Agung Bharata said Celuk Jewelery Festival 2017 is a momentum to lift Celuk silver and gold craftsmen and make Celuk as a tourist destination.

According to him, Celuk silver and gold craft business is lethargic, technology is very limited, marketing is lacking and understanding of regulation is weak. However, Agung Bharata believes Celuk's craft will rise again because of the cooperation made by the central and local governments to solve various problems that occurred.

Celuk Jewelery Festival 2017 takes place from 13 to 15 October with the theme of Mustika Nusantara Masterpiece featuring silver and gold handicraft products by artisans from Celuk Village, Gianyar Regency, Bali. Attending the Director General of Customs and Excise of the Ministry of Finance Heru Pambudi, Member of House of Representatives Commission VI Rieke Dyah Pitaloka