SMALL BUSINESS CAPACITY NEED UPLIFTING

The Government rated that national Small-­and-Medium Business needed to be armed with up­grading of competence through incubator of Business and Technology in universities to anticipate the re­gional market to be effective by 2015. The Business and Technology incubator (IBT) was an organization unit with physical activities to accommodate Small­-and-Medium Businesspeople (UMKM) counseling, il­lumination and training process in universities. “Today the number of active IBT was posted at 20 units in State Universities” this was stated by I Wayan Dipta, Deputy of UMKM Studies Dept, Ministry of Coopera­tives and UKM in Jakarta on Monday (21/1/2013).

Wayan rated Indonesia needed to step up UKM capacity through business incubators in uni­versities because other Southeast Asian states had prepared their UKM in anticipating ASEAN region­al market 2015. Indonesia was entrusted by other ASEAN countries to become leader in the UKM ca­pacity upgrading project. The name of the project was Strengthening SME Business and Technology Business Incubators. Therefore, Wayan said, the Gov­ernment would strive to facilitate legal protection and strengthen the position and competence of IBT in uni­versities.

Wayan admitted that competitiveness of In­donesian UMKM in exporting still needed upgrading. Amidst tight competition in the export market, Wayan pled UKM players to step up competitiveness in the global market. Based on data released by APEC, In­donesia was last on the list in terms of UMKM com­petitiveness. “That’s the importance of increasing capacity among UKM” Wayan said.

The problems and handicaps among UKM in Indonesia today was low application of internet, and low mastery of technology. Meanwhile the greatest handicaps of UKM in Indonesia was limited capital and marketing problems. Wayan said that in spite of many credit schemes being offered, UKM in the vil­lages were still unable to access credit services being offered by banks and financial institutions.

However, amidst efforts to step up capacity and competitiveness of UMKM today, Wayan stated had succeeded in realizing upgrading productivity and quality of around 360 players of UMKM through 2012 through application of appropriate technology priori­tized in 9 provinces. Wayan said that the successful effort to implement appropriate technology (TPG) on UMKM was exercised through various stages, among them by way of guidance, consultation, counseling and application of proper technology equipments.

Meanwhile Chairman of KADIN Suryo Bambang Sulisto asked the Government to offer various economic incentives for UMKM to be more competi­tive against overseas producers especially in facing the Free Trade era. Suryo stated that the effort to step up competitiveness in the business sector especially UMKM where to create a business condition which was conducive to progress. The Government’s task was to create a competitive business environment whereby UMKM might rank with overseas players, in terms of efficiency and productivity and such could be made possible by giving incentives.

According to Suryo, KADIN as the biggest accommodation for the business world supported the Government’s effort to create a competitive business environment especially by giving tax incentives, of far low logistics cost, energy cost convenience in business document application. All must be done in collaboration with the Government and the business world to synchronize it with company’s need at the moment and in the future. The point was, Suryo said, that competiveness must be enhanced by the Government by creating a business environment conducive to progress, starting from betterment on the policy side, tax incentives and various economic cost and ease in permit issuance.

Business News - January 25,2013