There is no reason for SMEs and cooperatives for not being ready for the ASEAN free trade (ASEAN Economic Community/AEC) which comes into effect in 2015. To that end, the government asked SME players not to be discouraged in facing the ASEAN free market. Because the Indonesian economy which was ranked the second position in the G-20 is the main weapon to compete in the ASEAN market.
Braman Setyo, Production Deputy at the Ministry of Cooperatives and SMEs, in Jakarta, Tuesday (4/3), stated that 58 million Indonesian micro, small and medium enterprise (SME) players are expected to meet that figure in 2014, in the next four years it is expected that they will be able to reincarnate into companies that go international. This expectation is rational because it is supported by the operations of Integrated Business Service Center (PLUT) which has operating 22 locations throughout Indonesia.
As the person responsible for the development of PLUT, Setyo said, with the number of MSMEs, their role is not surprising if in the next four years they turn into companies that go international. The target is facing the AEC 2015 agenda. However, he added, the development of cooperatives and SMEs need a leverage that is able to evoke a sense of entrepreneurship, boost productivity, competitiveness, and performance as well as reduce business operating costs. “What we meant by “Go international” is that at least it is able to reach the ASEAN level. To be sure, it could be a benchmark as one of the pillars of national economic resilience”, said Setyo.
According to Setyo, relating to the implementation of AEC 2015, there will be a threat that could undermine MSMEs and cause MSMEs to become a spectator in their own country. He mentioned that there are at least four things that will happen with the implementation of the ASEAN free market, namely the free flow of services, free investment, free flow of capital and free flow of skilled labor.
It is said, that Indonesian MSMEs must face competitiveness risk, the key is to work together to strengthen branding, innovation and legal aspects, especially the role of export-oriented SMEs. However, to go international, SMEs need to have management and innovation capability. He gave an example of packaging, which becomes an important part of product marketing. Therefore, packaging must be adjusted to market trends in order to attract consumers. Indeed, there is operational increase, but it would be advantageous because it is part of marketing strategy.
Meanwhile, to improve the competitiveness of cooperatives and MSMEs, the government carried out branding development program, design innovation and legal aspects that has reached hundreds of units. Deputy for Marketing and Business Networking of the Ministry of Cooperatives and SMEs, Neddy Rafinaldy, stated that increase in the competitiveness of MSME players has been implemented in four provinces.
The program will be continued to some other provinces which require assistance to improve competitiveness. Especially for design trends and branding, and design development. The four provinces that have been implementing this aspect are Bali, South Sulawesi, West Nusa Tenggara and Yogyakarta.
As for mentoring, development of design innovation and legal aspects of product has been implemented in six provinces, namely West Java, Central java, East Java, Yogyakarta, Bali and South Sulawesi. He said total number of cooperatives and SME players who have got this facility is 340 units and development of product packaging has been done to 500 cooperatives and SME players in East Java, West Java, Aceh, and Riau Archipelago. (E)
Business New - March 7, 2014