“One Village One Product” approach for small and medium scale industries

The Minister of Industry on 28 September 2007 issued Regulation No. 78/MIND/ PER/9/2007 regarding Increased Effectiveness in the Development of Small and Medium Scale Industries (SMIs) Through “One Village One Product” (OVOP) Approach (the “Regulation”).
The OVOP approach for small and medium scale industries is basically an effort to emphasize the uniqueness or special characteristics of certain regions in order to promote the products competitiveness in these areas and gradually in the global market. The Regulation defines small-scale industries as industrial activities with an investment value of up to IDR 200 million, and medium-scale industries as industrial activities with an investment value of between IDR 200 million and IDR 10 billion. The development of SMIs through the OVOP approach is to be implemented through the collaboration between the Central and Regional Governments in conjunction with relevant local private and community participants.