SMALL BUSINESS NEED COUNSELLING

The ministry of cooperatives and small business had been striving to promote UKM by various strategies among them through cooperation with universities. Choirul Djamhari, Deputy Manager of Restructurization and business development of kemenkop and UKM on Tuesday [30/4] reported that 20 incubators of the universities were ready to execute the UKM development program to prove their participation and support for the human resources capacity upgrading program of the real sector.

               

Choirul disclosed that UKM as incubator tenant in universities were categorized in 3 groups according to their business line. This was to make sure that their specialization could be handled by the incubator manager, hence technical guideline and counseling could be more focused. Moreover there was obligation by the manager that the UKM could identify their problems, so that handing could be more productive. However business incubators at the universities needed to procure facilities for incubation such as laboratories and consultation room where tenants could be served.

               

The competence of consultants was expected to be in accordance with business line grouping as needed by tenants. The process of UKM tenant recruitment even had to pass selection stage to detect specific things. In addition to that the relationship between business incubator manager with related office commanding cooperatives and UKM, institutions and stakeholders must be stepped up. He believed that concern fore UKM could be realized by motivating them to elevate their business class. “We have agreed to guide them whenever they need us” Choirul remarked.

               

Meanwhile Chairman of the Indonesian F&B Traders [Gapmmi] Adhi S. Lukman rated that UKM rarely had trainings in market research to support their marketing plan. Normally what was being conducted was only technical training like the making of a product. Amidst tight market competition UKM needed training in undertaking simple market survey. So far they had only been tying to probe the market he added on that 85% of output of food products were produced by big companies while UKM only had 15% share. However in terms of absolute number, the numbers of big companies were less than 1% of UKM.

               

According to Adhi, supposedly the government could facilitate UKM who did not have legal identify to have trainings in survey. They did not have legal identity as the business they ran frequently opened and closed. He said that in fact UKM were sustainer of big enterprises. In spite of having product potential their business was not sustainable. Adhi said that it would be best if they could first understand the market being probed. Although success was not guaranteed at least there was preparation.

               

In terms of taxation, the government must give exceptional treatment for micro business in imposing income tax for companies with return below Rp4.8 billion. Years which was 1%. He stated that those classified as the micro business was the business sector with capital amounting to Rp0- Rp50 million excusive of land and business site with maximum return of Rp0 – Rp300 million year. However if the government were serious about implementing the policy, the government should give feedback to UKM for the obligations. The government must be able to protect UKM in business competition, help them to minimize production cost and abolish illegal collections.(SS) 

Business News - May 03,2013