Wednesday, 17 June 2015


Small and medium industries still maintain its existence in the midst of sluggish economic conditions at the moment. As stated by the Director General of Small and Medium Industries (SMI) of the Ministry of Industry, Euis Saedah, in Jakarta, on Tuesday (May 19), SMI is the life of their own enterprises. “They are able to make changes in the production system according to market response. Even with this recent condition, many SMIs sometimes have sad stories, but they still survive. Despite all the things done in a flexible and structured way, using standardized materials, they are quick to adapt to the weakening of purchasing power, “she said after officially opening the superior Products of Sumatra and Kalimantan 2015 exhibition at Plasa Pameran Industri, Ministry of Industry.

“Because they have to sell their products, then within a more flexible time frame, they wait longer for their products to be sold out. Because they are as employers, and their employees have to survive, despite the slow response of people’s purchasing power. That’s why the growth of SMIs during the first quarter of this year is higher than the growth of large – medium enterprises. If in 2014 growth only reached 7.5 percent, in the first quarter of this year, growth ranged from 6 to 6.5 percent, although official figures have not been released, said Euis accompanied by Secretary of the Directorate general of SMIs of the Ministry of Industry, Busharmaidi.

Specifically associated with the potential that exists in Sumatra and Kalimantan, currently fashion and processed food product industries have to be reckoned with, because the Dayak tribe which was known through their dances, their productivity started to rise. Characteristics of SME entrepreneurs are they are utilizing the potential of existing resources in their daily lives into value-added with a sale value. For example, Mandala fashion designer, which began to develop Batak culture into value-added products with higher sale value. Both related to the potential of natural resources for food products or for the needs of fashion in Sumatra. Although admittedly there are a number of textile raw materials, like silk, that has to be imported, she said.

The government is also trying to discuss with the office of the Coordinating Minister of Economy in order to help distribute more “friendly” loans for micro, small and medium enterprises, so that they are empowered to operate businesses. Loans that uses funds from the state budget (APBN), entrusted to the bank, and the fund is estimated at around IDR 7 trillion, to be in intended for all SMEs, including farmers, ranchers, and micro, small, and medium enterprises. With a borrowing rate between 12 to 16 percent, it is expected that this program will start to be implemented in 2016. As it uses People’s Business Credit (KUR) as a reference, the estimated maximum limit will be similar to KUR. It means that for micro enterprises, the maximum ceiling is IDR 500 million” said Euis.

Indonesia has superior potential in the form of a number of food and clothing products. Clothing and food industry development has become a development priority carried out by small and medium industries. “The spirit of creative work and to create requires attention and facilitation to promote domestic products” he said.

Some of the featured clothing products from west Sumatra is songket fabric which is a fancy woven fabric usually worn during celebrations or parties. In addition, types of fabric from Sumatra include embroidery cloth, clay batik and embroideries with each of their unique characteristics, such as kerancang langsung embroidery, kamalo piniti needlepoint (Padang Pariaman), and pessel with embroidery. While, the well-known food products are, among others, rending, balado chips, and so forth.

Similarly, Kalimantan has a variety of handicraft product through clothing products that have high sales value, such as woven cloth belt, which is a cloth worn by men to complete teluk belangga cloth typical of Malay. There is also woven Belitang fabric from Kupang llong, Sekadau Regency (dayk mualang/ibanik), long Ensaid woven cloth of Sintang Regency (dayak and Kantuk/Ibanik group). While, the well-known food products typical of Borneo include, among others, spicy sour dishes in Pontianak, wet crackers which is a typical food of Kapuas Hulu, and pansho, which is meat cooked in bamboo by the Dayak community. (E)

Business New - May 22, 2015

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