The government was optimistic that Small-and-Medium Industry [IKM] was ready to join the Asean Economic Community/AEC to be effective in 2015. The Director General of IKM, Ministry of Industry Euis Saedah stated in Jakarta o Monday [24/6] this she in collaboration with same related institutions were scheming up a comprehensive concept toward AEC. According to Euis, IKM would be divided into 3 industry group, namely handicraft, fashion, and food & beverages. In handicraft, Euis said, the government would focus attention on one handicraft industry. “The point is that IKM is ready to compete in the ASEAN Free market.” Euis underscored
Based on Ministerial data, the fashion and handicraft sub-sector prevailed in contributing to national economy in terms of added value, manpower, and number of business units. The added value contributed by the fashion sub-sector was 44.3% and handicraft 24.8% of total handicraft industry contribution with employment posted at 54.3% and 31.13%. Meanwhile the number of business units of the fashion industry was 51.7% and handicraft 35.7%. The total export of the two subsectors came to USD 13 billion on the average per year over the past few years.
Euis stated that the Ministry of Industry was synchronizing effort with other ministries like the Ministry of Trade, Ministry of Tourism and Creative Economy and the Ministry of Cooperatives Small-and-medium Business. According to Euis, the Ministry of Industry must join forces with other ministries to win competition in Asean. She was also asking IKM circles to consolidate and strengthen competitive edge in the free trade era.
On the other hand Indonesia Small Business [IKM] loved to take new challenges if they failed to run the previous business. Therefore IKM businessmen frequently changed from one business line to another. Therefore IKM growth in Indonesia was not high by quantity. But once they got settled, for example in 2 years, they grow and re-invest. Euis added that she would motivate emergence of new entrepreneurs in Indonesia. On the other hand, IKM were also encouraged to command over modern technology, increase added value, and expand market. The Ministry also facilitated access to outside Java. Today Euis said the ratio of KIM outspread was 60% in Java and 40% outside Java.
Euis underscored that IKM empowerment and development was among the priorities of the ministry of industry through a series of program, among others training technical and non technical counseling, and promotion. The activities were aimed at overcoming problems, i.e. human resources, capital, and technology. She also remarked that IKM was one of the people’s economic spearhead, which needed to be constantly developed the coordinated way involving related government and non government institutions.
He expected nurturing could be exercised the focused way and inter-complementary, which would bring positive impact on IKM development whereby to promote people’s economic growth. Meanwhile the ministry predicted total national investment of IKM was posted at Rp261 trillion till 2012, an increase of 8% against previous year. According to Euis, of the 3.9 million units of IKM at home, 85% had asset of Rp500 million to Rp5 billion. By end of 2012 the number of national IKM was protected to become 4.02 million units. In parallel with that the workforce being employment was posted at 9.46 million people. (SS)
Business News - June 28,2013