SMALL INDUSTRY MUST INNOVATE TO BE COMPETITIVE

The Ministry of Industry asked Small and Medium Industry [IKM] to enhance innovation and creativity whereby to rise and contribute more to state’s revenues. Such was also to enable IKM to prepare for the AC by increasing quality and competence to meet the great demand. The Director General of IKM, Ministry of Industry, Euis Saedah in Jakarta on Monday [4/11] said that the IKM industry played a strategic role as they were able to contribute significantly to national industry especially the Creative Industry.

Euis said that in 2013 the number of IKM in Indonesia was posted at 3.9 million units which were able absorb 10.3 million workers. With that number of units, IKM would be able to contribute significantly to national export at USD 19.58 million. Meanwhile total production value of IKM came to Rp735 trillion, contributing 10% national GDP. Somehow IKM players must continue to make breakthroughs by strengthening competitive edge, efficiency and productivity, especially in facing AEC 2015. “If we wish to compete at the ASEAN market, we must be armed with innovative and high quality products” Euis remarked.

Euis was optimistic that IKM was highly potential for development, and the potential must be developed to be competitive. She mentioned that there were 3 IKM sub-sectors like fashion, food and handicrafts which were prospective as national economy’s backbone. AEC was a great challenge and opportunity for UKM to penetrate into the Asean market without any obstacle or tariff barrier of any kind.

Meanwhile in the effort to step up quality of IKM products to be up to the standard of orders in the near future, Euis said that the Ministry of Industry was constantly upgrading IKM human resources through various trainings and to facilitate machineries in revitalization program whereby to promote IKM’s productivity.

On the other hand Erwin Aksa, Vice Chairman of KADIN UKM section stated that to face 2015 KADIN had special strategy especially in relation to Small and Medium Business [UKM] and cooperatives. At least KADIN had two ways to step up quality of Indonesia’s IMKM toward AEC. Firstly, KADIN would collaborate with the Ministry of Cooperatives and UKM to set up a special financial institutions for serving and facilitating UKM all over Indonesia.

According to Erwin, by 2015 there would be at least a fast market of 591 million buyers posing as market opportunity for Asean marketers. Of all Asean population, 80% were people below 45 years of age. As second step, KADIN would run transaction procedures for UKM the electronic way. Besides KADIN as one of UKM leaders woild promote development of E-commerce. 

Business News - November 8, 2013