Potential of Indonesian SMSE

Potential IKM Indonesia 2

Potential of Indonesian SMSE. Small and medium-sized Enterprise (SMSE) is one of the industry sectors that plays a significant role in promoting economic growth in Indonesia. The number of IKM in Indonesia has as many as 4.59 million units of business spread across the region by absorbing manpower of more than 10.57 million people.

The head of the National Research and Development Agency (BPPI) Timur East Timor said that IKM is able to contribute to the value of non-oil industry output up to 20.26 percent. This results in making the IKM into 10 national priorities in the Making Indonesia 4.0 initiative.

The use of technology is also one of the important factors to boost the potential strength of Indonesian SMSE to produce more competitive products at the national and global level. It is also useful to encourage the creation of innovation in line with the implementation in the era of Industrial Revolution 4.0

IKM also contributes to the realization of economic independence, productivity and competitiveness in the international market as well as building areas and countryside. The Government is aware of the potential of Indonesian SMSE so that many national industry development efforts are more globally competitive. This is done through various instruments, both in terms of policy and support of industrial facilities and infrastructure. In this case, the focus is also on the IKM sector.

Industrial Technology Improvement Partnership Fund (FIND)

Kemenperin has a program of Industrial Technology Improvement Partnership (FIND) which aims to improve the capability of IKM in the development and application of industrial technology. This Program is implemented through research and Development center of Industrial Technology and intellectual property.

The FIND Program provides funding assistance in the form of fees required for technical consultancy services. This is useful to address the problems faced by IKM, thereby improving efficiency, productivity, value added, competitiveness and independence. Sony Sulaksono as the head of Research and Development center of Industrial Technology and intellectual property of Kemeneperin hopes this program can increase the potential of Indonesian SMSE.

Help Form FIND

The form of assistance for technical consultancy services refers to the scheme of partnership. IKM also financed the project with schemes 75 and 25. 75% of government financing through grants in the form of technical consultancy services and 25% of the financing of IKM people.

In the last five years, as many as 25 IKM spread across Indonesia have felt benefit from the program. There is an IKM in ACEH which has received consultancy services for increased production through the ACEH Research and Standardization Hall. There is also an ornamental ceramic IKM in Bandung which gets consultancy services. It for increased productivity and competitiveness of ornamental ceramic products through Balai Besar ceramics.

In Yogyakarta, there is also IKM Batik which got consultancy services of batik design products. They do that through the Balai Besar handicraft and Batik. There is also a chocolate IKM in Makassar that got the service of increasing the quality of chocolate products. They improved tempering process through the Balai Besar Industri Plantation. 

In 2018 this is being implemented assistance consultancy services and technical guidance through the program FOUND to five IKM. The IKM includes a lemongrass tea processing IKM in Tenggarong, sweet IKM eggplant in the Marine land, IKM chocolate in Bali, IKM Coffee in Malinau, and IKM Batik in Bulungan. The potential of Indonesian SMSE is certainly expected to bring positive impact to Indonesia.

Indonesian handicraft industry absorbs 1.32 million workforce

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