Thursday, 11 October 2012


Small-and-Medium Industry (IKM) played an important role in national economic development. The IKM industry was evidently shock-proof against global economic crisis. In addition to that IKM was able to accommodate employment and stimulated equal distribution of people’s income. Based on data of the Ministry of Industry today there were around 3.8 million units of IKM in Indonesia, 75% of them were spread out in Java and 25% were outside Java.

Therefore, considering the importance of IKM’s role, some programs had been run such as channeling of People’s Business Credit (KUR) advancement of technology through rejuvenation of machineries and assistance in patenting application. Advancement of human resources skill and competence through trainings and nurturing, while quality assurance and safety of food must be enhanced, in order to expand market access. The Minister of IKM of the Ministry of Industry continued to encourage IKM players to apply for patent for intellectual rights. In regard to the use of patent for IKM products, the Directorate General of IKM, Ministry of Industry had exempted patent expenses for UKM products.

The Director General of IKM Eusis Saedah in Jakarta on Thursady (9/8/2012) underscored that the Government exempted expenses for IKM products in applying for intellectual rights for their products including patenting, branding and designing of products she believed that the exempting was important to enhance creativity of producers at home amidst heightening competition “We hope there will be more small industries who will patent their products since they are freed of the expenses” Euis remarked.

Euis admitted that awareness among IKM players in patenting their products were still low. This was visible from the number of IKM who had patent today. She mentioned that the patented products constituted only around 1% of total national IKM products. To support the program, Euis said the Government planned to prepare a special budget of Rp 2 billions to nurture and guide local IKM and apply for patent in 2003. Part of the fund would be used for publicizing the plan to IKM and telling them the importance of patenting their products. She also promised to extend legal aid to UKM who were troubled in legal disputes.

Other problems faced by IKM according to Euis was marketing. She said that today it was hard for IKM products to enter shopping centers or mall, moreover to think that the tax might come to 40%. She disclosed that the Ministry had discussed the problem of high Tax with management of malls. Unfortunately they had not arrived at any point of agreement and was still negotiating toward arriving at a meeting point.

Euis saw that shopping centers today were still selling more imported products. An yet she said, the Ministry of Industry sets target for IKM growth in 2012 to reach two digits. She explained that in Semester I 2012 IKM growth broke through 7.22 percent. To overcome the problem, promised to activate IKM expo organizing. For this year the Government had allocated budget of Rp 1 million for staging exhibitions in 2012. She remarked that expo activities was to encourage IKM players to increase production and enhance creativity.

While increasing sales in the domestic market, Euis added, the Ministry of Industry would also promote export of IKM products. She said that today export of IKM products constituted only 2% - 3% of total national non oil-gas export. Next year the export target would be increases to 5%. Euis rated that the global economic crisis would have no great impact on export of IKM products. Only a few commodities were affected by the global crisis. “not too many products suffered the impact of global crisis only some products like textile, leather and footwear were affected” Euis concluded.   

Business News - August 13, 2012

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