Monday, 8 June 2015


The Ministry of Industry planned to build 34 Small Industry (IKM) centers of Indonesia. the step was supportive to making of strong IKM in Indonesia. The Dir . Gen if IKM of the Ministry of Industry reported that in the 5 years the Government planned to make 20.000 IKM 4,500 medium in industry.

The IKM Centers were deigned to enhance performance of micro and medium business in terms of raw materials and wastage processing. Besides, the integration plan would spread out advancement of technological equipments and environmental conservation. For a start, the project would begin in Java.

Imam Haryono, the Director General of industry Zones Development stated n Thursday (7/5) was optimistic that building of IKM Centers in all of Indonesia would be realized in 20 years. He had collected data of Core Competence of the region (KIID) which would be the capital in building IKM centers in each Regent.

The IKM Center was centralization of IKM activities making same type of products including all the infra-structures. Based on KIID recapitulations facilitated in 2013, there were 289 regencies/cities being KIID facilitated: 73 in Sumatra, 36 in Kalimantan, 82 in Java Bali, 49 in Sulawesi, 21 in Nusa Tenggara, 15 in Maluku and 13 in Papua.

According to Imam, the optimism to realize 1 IKM center each regency was supported by presidential Regulation No 28/2008 on National Industry Policy. The Regulation (Perpres) regulated development of UKM through Business Reserve Scheme and Technical Guidance and Management counseling and giving away of special facilities to make them grow well.

The mechanism of IKM Centers needed strong commitment and collaboration with the local Governments. According to Imam, to build IKM centers was designed to strengthen competitiveness and to maximize potentials in each region. According to Imam, to build IKM Center the local Government must procure land at least 5 hectares clean and clear and prepare a business plan to manage the IKM center. Besides, the local Government must also prepare personnel, give guidance and prepare adequate fund after being handed over by the Central Government.

Building of small Industry (IKM) Centers in every Regency depended mush on the local Government in terms of readiness of infrastructure or cost. The Ministry of Industry, he said would focus on other aspects like finding tenants, counseling or mastering of technology. The Ministyr would build IKM Centers as pilot projects in 2016 in Konawe, Southeast Sulawesi to be followed by 3 projects in West Indonesia and 3 projects in East Indonesia.

In the period of 2015 – 2019 the Government prioritized building of 22 IKM centers outside Java, i.e. 3 in Papua, 2 in Maluku, 4 in Nusa Tenggara, 2 in Sulawesi, 5 in Kalimantan and 6 in Sumatra. The Director General stated that the Government wished to generate multiple effect of the IKM centers so more people would have the benefit and competitiveness of regional economy could be enhanced. (SS ) 

Business New - May 13, 2015

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