Cooperation and Synergy between Indonesia and South Korea Becomes the Strategic Step of SME Innovation

INDUSTRY.co.id - Jakarta - Cooperation and synergy between Indonesia and South Korea in the field of innovation development of SMEs is a strategic step. This was conveyed by Expert Staff of Minister of Cooperatives and SMEs for Macro Economy Hasan Jauhari at 2nd Indonesia-Korea SMEs Business Innovation Forum event in Jakarta, Thursday (14/12/2017).

"We have to admit, the innovation of Indonesian SME products is still behind, while South Korea is a leading country in terms of innovation in the SME sector, so this cooperation and synergy is a strategic step for our SMEs to innovate, so that the products it produces have competitiveness in global markets, "Hasan said.

The event was attended by about 50 delegates from Korea and 100 UKM Indonesia. Hasan hopes that this event will serve as a means to dialogue and exchange ideas in fostering the spirit of innovation among Indonesian SMEs. "Korea is the world's number one country in the field of SME innovation, and our SMEs should be able to take advantage of this by actively sharing or sharing information so that cooperation between SMEs can be established," said Hasan.

Even so, continued Hasan, SME innovation should still be based on local wisdom as a value-added advantage of SME products from Indonesia. Meanwhile, Korea's SME product innovation is technology-based or technopreneur.

"In addition to innovation, our SMEs must also step into the world of information and communication technologies that are now emerging. Therefore, because of such market demands, our SMEs should force themselves to migrate from offline marketing to online," said Hasan.

Moreover, continued Hasan, Go Online's market prospect in Indonesia is very large, with an increase of about 19% every year. "Clearly, this is very prospective for SMEs of Indonesia, so we continue to conduct training for SMEs in order to innovate, among others, participate in developing Digital SME Village to be able to market products online," said Hasan.

Hasan said this cooperation and synergy will be mutually beneficial for SMEs of both countries. "There is something they have, we do not have, and vice versa, there is what we have but they do not have the condition that is expected to give added value for SMEs of both countries," said Hasan.

On the same occasion, ASEM ASEIC Executive Vice President Kim Se Jong said the cooperation and synergy is a concrete follow-up of South Korean President Moon Jae-in's visit some time ago. Where in the meeting with President of Indonesia Joko Widodo, the strategic partnership between Indonesia and Korea has risen to become a special strategic partnership.

"This step is also expected to be the largest contribution for both countries in the field of SME development in Indonesia," said Kim Se Jong.

Kim Se Jong added that there has been much support for South Korea in developing SMEs in Indonesia. "I see the two countries are serious to improve the innovation of SME products, as well as a trigger for the innovation synergy between the two countries for SMEs and economic cooperation between the two countries should also be based on the activity of SMEs," he added.

While the Minister's Advisor and Chief Economic Officer of the Embassy of the Republic of Korea Kim Chang-nyun said it sees Indonesia as a potential market which is the largest market in Asia by 40%.

"Indonesia has enormous human resources, large natural resources, and also large consumers, and many South Korean companies have invested in Indonesia because the South Korean government is very concerned about Indonesia, especially the development of SMEs," said Kim Chang-nyun.