Facing
the ASEAN Economic Community (AEC) open market in 2015, the challenges faced by
Indonesia, including the business community, is quite heavy. It requires a change
of paradigm and perspective of small and medium businesses (SMEs). The
government has a strategic role to increase competitiveness of Indonesian
goods and services.
In
the AEC blueprint that has been signed by all ASEAN countries, SME sector is one
sector which is considered to be a driver of the economy. There are four main
priorities for enhancing the role of ASEAN SMEs, starting from accelerating of
the development of SMEs, strengthening of competitiveness and dynamism of
ASEAN SMEs by facilitating access to information, markets, human resources and
expertise, finance and technology. ASEAN SMEs also need to be helped to face
macroeconomic issues, financial difficulties and challenges of trade
liberalization. Contribution of SMEs to economic growth of the ASEAN region
will be further enhanced.
In
such circumstances, the Ministry of Cooperatives and SMEs is targeting the
export share of SME products to reach 20% of the total export value in 2015 so
that imported products do not flood the domestic market, especially consumer
goods. Syamsuddin, Deputy Assistant for Cooperative Research of the Ministry
of Cooperatives and SMEs, on Friday (April 4), said that currently export share
of SME products ranges from 17% to 18% of total export value, which based on
data of the National Bureau of Statistics (BPS), up to September 2013 reached
USD 133.95 million. He said that most of the export-oriented SME products are
handicrafts, such as foot wear, leather goods, and electronic spare parts.
In
addition to crafts, Syamsuddin admitted that there are other products developed
in order to meet export standards, such as food products, fruits and
vegetables. These products are expected to compete with similar products from
China and Thailand who had already penetrated market. Nevertheless, there are
some things that need to be paid attention to in order to ensure that the
delivered products can compete with similar products from other countries.
To
improve business capacity, SMEs can take advantage of the Micro Business Credit
(KUR) program and revolving funds channeled through the Revolving Fund
Management Institution (LPDB). Syamsuddin said that the distribution conducted
by LPDB has been right on target as the ratio of nonperforming loan (NPL) is
below 2%. It shows use of funds for productive activities. SMEs will also be
given guidance to improve the capacity and skills so that their businesses
could improve.
He
explained that the world export market is dominated by SMEs products. 40% of
the world export market is SME products. Therefore, the potential of this
sector needs to be strengthened. Of the 56 million SMEs in Indonesia, only
2,700 SMEs that become exporters. Thus, there is still an open opportunity
for SMEs to compete in AEC 2015. He believes that SMEs have strengths so that
they can compete with other countries. The strengths are in making design and
in self-designing their products.
He
also hoped that the Asia Pacific Economic Cooperation Small Medium
Entrerprises Working Group (APEC-SMEWG) Meeting 2014 can produce important
points to be implemented for the purposes of the real sector entrepreneurs in
the respective member states. One of the agreements reached in the meeting is
that is the resilience of SMEs to cope with disaster. APEC also agreed to build
a business continuity plan (BCP) to facilitate SMEs in trade and investment
sector. Facilitation of SMEs who are affected by disaster is although the
adoption of BCP for information technology and communications industry,
logistics and auto parts industry, especially to build resilience of SMEs who
are victims of disaster. It was one of the agreements reached through
decision-making policy through high-level talks for a better global supply
chain. (E)
Business New - April 11, 2014
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