IN THE FACE OF COMPETITION, SMALL AND MEDIUM ENTERPRISES SHOULD BE INDEPENDENT

Government reminds Cooperatives and Small and Medium Enterprises (KUKM) to prepare themselves to face the ASEAN Economic Community (AEC) 2015, because it is believed to be more powerful than the ASEAN-China free trade in 2010. KUKM must make the preparation, because any agreement which is acknowledged the MEA cannot be changed anymore. To face the competition in the AEC 2015, Indonesian KUKM must prepare a strategy. For example, improvement of infrastructure as the main support, improvement of human resource quality, and improvement of product quality in order to compete maximally.

Emilia Suhaemi, Deputy of Marketing and Business Network of the Ministry of Cooperatives and Small And Medium Enterprises (SMEs), in Jakarta (Friday, November 22) confirmed that KUKM should also increase the capability to cultivate regional potency to becomes a superior product based on prospective local human resources, improve competiveness, increase creativity and product innovation so it will not be displaced by imported products. In addition, improving product quality in order to make the product more attractive and cheaper, but still dynamic in developing business because of standardization requirement and environmental issues.

Is said that government’s role in empowering and improving human resources quality and enrtrepreneurship to change the mindset from production orientation to market orientation. “We encourage KUKM to be independent in order to face competition in the free market,” said Suhaemi.

She said that in facing the ASEAN single market, the Ministry of Cooperative and SMEs will also focus on the marketing of food and beverage products produced by Indonesian SMEs. Suhaemi said that the priority is given to small & medium-scale producers, because many of them are already export-oriented. Moreover, according to her, the world’s population is getting denser so that the need for food and beverages continues to grow.

She considered that this potential should be used optimally by SMEs, especially food and beverage manufacturers. In addition, she said, the awareness of the international community of hygienic food and beverage products also encourages the increase of intensity of culinary business. This business is very likely to be developed in Asia. She pointed out that in China currently there is a growing trend of young people hanging out drinking coffee. Therefore, he said, the food and beverage market is not limited to the ASEAN market alone.

Because marketing target is directed to the global market, she said, the tagline was Indonesian Taste Global Taste. It means that even through the food and beverage products are originating from Indonesia, but the taste is worldwide. To be sure, he said, many of the small and medium food and beverage manufacturers Indonesian have been export-oriented, so the Ministry of Cooperatives and SMEs as a coaching institution for real sector entrepreneurs, direct them to pick the right market.

Suhaemi reminded that SMEs have a very big role in the Indonesian economy. When this country was hit by crisis, SMEs become the sevior of the Indonesia  economy. Moreover, SMEs are also laborintensive, which means that it can reduce unemployment rate in this country. The government needs to improve marketing and market access by creating marketing infrastructure and improving access to finance.

To improve marketing and market access, the Ministry of Cooperatives and SMEs sees that revitalization of traditional markets is the most strategic program to anticipate AEC. Therefore,the goal is to empower micro actors that had been growing in the market and have not had a decent, healthy, clean, and comfortable place of business, and owned and managed by traders under cooperatives. 

Business News - November 27, 2013