Credit: Kemenkopukm

Jakarta – The Ministry of Cooperatives and SMEs (KemenKopUKM) is collaborating with a number of institutions and ministries to link cooperatives, MSMEs into global supply chains. This was manifested in the UMKM/IKM Partnership Forum with SOEs and Large Enterprises which was held at Smesco Indonesia, Jakarta.

The Minister of Cooperatives and SMEs, Teten Masduki said President Jokowi gave his party and several other institutions the task of encouraging MSMEs to upgrade.

“Currently MSMEs connected to the global supply chain have only reached 4.1%, while for domestic large business partnerships and MSMEs it is only 7%. Therefore, we are developing an MSME upgrade program. One of them is MSME partnerships with SOEs and large businesses,” said Teten in a written statement, Thursday (24/11/2022).

Institutions that would work together include the Ministry of Industry, the Ministry of BUMN, and the Ministry of Investment. This Partnership Forum involved 17 SOEs and Subsidiaries, 2 Large Enterprises and 850 MSMEs.

He explained that there were two efforts made to encourage MSME partnerships. First, SOEs buy MSME products through PaDi UMKM. Then the second is to include MSMEs in the supply chain of SOEs and the private sector (big business) so that a partnership pattern is formed.

Examples include cooperatives and MSMEs in South Korea, Japan and China which are directed to become part of the automotive, food, health, agriculture and other industries.

“Therefore, MSMEs are no longer independent businesses but are part of the industry. This is what we want to build. With partnerships between MSMEs and large businesses there is a transfer of knowledge and business management,” he explained.

Thus, MSMEs could upgrade and evolve from producing goods and services with low skills to creating products based on creativity and technology.

“In this way, MSMEs could become part of industrialization. If the industry develops, MSMEs also grow, not being left behind. This is also our effort to prepare Indonesia to become the world’s four major powers,” he said.

He added that SOEs and Large Enterprises would benefit from partnering with MSMEs as mandated in the Job Creation Law. “To encourage partnerships, various incentives have been provided, such as taxes, minimum wages and the ecosystem,” he said.

Meanwhile, Expert Staff to the Minister of BUMN for Finance and MSME Development, Loto Srinaita Ginting said that her party was also trying to encourage and succeed in the affirmative action of the domestic product shopping movement.

“This is an encouragement for SOEs to increase spending on domestic products, including MSMEs. It is recorded that spending on SOE Domestic Products as of 31 October 2022 reached IDR 241.3 trillion. The hope is that through this event the achievements will increase again,” she said.

She added that there was an increase in SOE participation from last year’s 6 to 17 SOEs. “Of course this is due to the spirit of BUMN to continue to support MSMEs as a BUMN supply chain,” she said.

Director General of IKM and Multifarious Ministry of Industry, Reni Yanita said this activity was a follow-up to the MoU that had been carried out. The hope is that there would be an increase in the communication that has been established.

“The Ministry of Industry is preparing IKM to be able to improve competitive performance and we are conducting coaching to make IKM part of the supply chain of large and hospitality industries,” she said.

Expert Staff for Priority Investment Sector Development at the Ministry of Investment/BKPM, Aries Indanarto said that his party had presented OSS for MSME players.

“Thus, a single permit can be directly issued by issuing an NIB as business legality. With this, businessmen are able to commercialize their business and integrate it with SNI and halal certification,” he said.

For information, the SOE cooperation contract with UKM/IKM has been signed on this occasion. The contract is between PT. INKA with CV. Sri Adiwangsa and PT. Manunggal Jaya Teknindo. Then also between PT. Pindad with PT. Hartwell Paint Indonesia.

This article has been published in with the tittle, “Kemenkop Bentuk Forum Kemitraan UMKM dengan BUMN & Usaha Besar” in full–usaha-besar.

Translator: Ritya Bilqiis

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