Minister Airlangga: Medium-Large Industry Partnership can be a SME Development Strategy

INDUSTRY.co.id - Jakarta- Cooperation in partnership with medium-large industry is one of the strategies that need to be undertaken for IKM development and strengthening the role of SME in industrial supply chain.

This was stated by Minister of Industry, Airlangga Hartarto as a Taping Resource at the Event Program of Indonesia Economic Solutions Forum with the theme "Restoring the Triumph of UMKM-Based Industry" initiated by the Association of Indonesian Economist Degree in Jakarta, Tuesday (29/8/2017).

As is known, the Ministry of Industry currently actively facilitates partnerships between small and medium industries (IKM) with large-scale manufacturing. The effort based on the mandate of Law No. 3 of 2014 on Industry aims to strengthen the supply chain of industrial sector in the country to be more productive and competitive.

"The cooperation undertaken under the principle of mutual benefit plays a significant role in strengthening the national industrial structure and poverty alleviation through the expansion of employment opportunities, and produce export-oriented products," he said.

Some partnership programs that have been facilitated by the Ministry of Industry, including metal IKM in centers Tegal and Ceper with PT. Polytron and PT. Panasonic in supplying the needs of electronics components. "In addition, we also bridge the cooperation between metal SME in Tegal center with PT Astra Honda Motor to supply motor vehicle components," said Airlangga.

Another partnership, which is between metal SME in Ceper with PT. Inka and PT. KAI to distribute rail components such as cast iron brake block, brake block head, side bearer housing, journal spring upper seat, journal spring bottom seat, bottom center plate, and upper center plate.

"We are encouraging Ceper's SME cooperation with heavy equipment industry so that in the future it can supply to heavy equipment components market, such as road roller and excavator," said Airlangga.

In fact, in order to increase the use of agricultural tools in the country as the entry of imported products, Ministry of Industry has cooperated with IKM that produces hoes for cooperation with PT. Krakatau Steel, PT. Boma Bisma Indra, PT. Sarinah and PT. Indonesia Trading Company in fulfilling the requirement of raw materials and its distribution.

"In the near future, there will be cooperation between IKM and big industry in furniture sector especially to fulfill export market," he continued.

In addition, the partnership is also targeted between the medicinal plants farmers with the cosmetics industry and large herbal medicine for the provision of raw materials.

According to Airlangga, such cooperation encourages efforts to improve the quality and management of SMEs so as to meet the needs and criteria of large scale industries.

"Therefore, Kemenperin also facilitates the development of SME competitiveness with training programs, certification and strengthening of product standards," he concluded.