Minister Urges SME Players to Build Joint Brand to Boost Competitiveness

INDUSTRY.co.id - It is important for businesses to achieve economies of scale to boost competitiveness, according to Minister of Cooperatives and Small and Medium Enterprises (SMEs) Teten Masduki. The Minister made the statement during a discussion about creative economy with Bandung Culinary Community at Orbital Dago in the West Java provincial of  Bandung, Friday (11/06).

Teten went on to say that in this digital era, the market is widely open and Indonesia’s products must be ready to compete, have better quality, and be ready increase production capacity to meet market demand.

Therefore, Teten urged Bandung’s creative industries to collaborate under one joint brand in order to have more power in competing, adding that there is a local culinary platform in Payakumbuh city in West Sumatra province that aims to produce rendang, traditional meat slow-cooked in coconut milk and spices from the province.

“The business merger will generate great power in today’s modern business and both business and brand consolidation will follow,” he said.

On that occasion, Teten also underscored that the Government would continue to provide business ecosystem so that micro, small, and medium enterprises (MSMEs) have fair access to the digital market and finance (public loans or Government subsidized loans).

“The portion of banking credit for MSMEs will be increased by 30 percent until the end of 2024. People’s Business Credit (KUR) will continue to be facilitated for MSMEs to strengthen their basic capital,” he said, adding that the Government also has a regulation to allocate 40 percent of its spending budget amounting Rp460 trillion for MSMEs products each year to encourage MSMEs to enter the industrial supply chain.

Echoing a similar statement, Presidential Special Staffer Putri Tanjung also stressed the importance of the collaboration for MSMEs.

“Amid this current condition, business collaboration is the key to success,” she said, adding that apart from collaboration, innovative mindset and adaptive action are also crucial to face the business struggle in this era.

Putri also said that MSMEs must have the ability to change problems into opportunities in order to survive. In the meantime, one of the participants who is also business owner, Meizan, said that entrepreneurs who are also members of the Bandung Culinary Community are initiating a cooperative platform to facilitate financing for members.

In line with Meizan, Arifin Windarman, another participant, stressed that cooperative platform is important to boost culinary businesses in the city.

“We built a Culinary Laboratory, a kind of culinary collective platform. The output is not only a culinary product, but also research, books, and films,” Arifin said.