Teten Masduki Launches 'UMKM Foster Brotherhood' Program, What Is It?

JAKARTA - Minister of Cooperatives and Small and Medium Enterprises (UKM), Teten Masduki inaugurated the UMKM Foster Brotherhood program through Smesco in collaboration with Blibli. The aim of this program is to expand the market for products of micro, small and medium enterprises (MSMEs).

Teten said, for the expansion of the product market and training to increase the capacity of human resources (HR) for MSMEs, it would be better if we cooperate with digital i.

"This step is part of the acceleration of the UMKM digitization program," he said, at the launching of the cooperation program between Smesco Indonesia and Blibli.com, titled Foster Brother UMKM (KAU) virtually, Monday, August 31.

Teten said, digitization is a must. Moreover, now there has been a change in consumer behavior in shopping from coming to the store directly or offline to online.

Furthermore, Teten said, the value of Indonesian e-commerce transactions continues to increase sharply as 97 percent of Indonesia's territory is connected online.

"Many MSME products are good and needed by consumers, but they are not yet connected to the digital market. The 'UMKM Foster Brotherhood' program connects and expands them with the market through digital platforms," he said.

Teten explained, to enter the digital market and survive in this ecosystem, MSME players must improve product standards and production capacity.

"Because, in the digital market, speed and accuracy are needed," he said.

Establishing partnerships with large businesses such as Blibli.com, said Teten, is one of the KemenkopUKM strategies so that MSMEs can advance in grade. This includes increasing the number of entrepreneurs in Indonesia who are currently still below the ideal figure, which is below 4 percent.

"Empirical studies have proven that cooperation or large business partnerships with MSMEs are able to encourage MSMEs to be more resilient," he said.

On the same occasion, President Director of Smesco Indonesia Leonard Theosabrata said, this KAU program is a movement that will continue to be echoed.

"The idea is very simple, which is to help SMEs who are not digitally literate," said Leonard.

According to Leonard, experts in digital literacy, MSMEs will be assisted and fostered by Blibli so that on-boarding, including opening and expanding access to marketing of its products.

Meanwhile, CEO of Blibli Kusumo Martanto said this movement must be carried out jointly. He considered, if you want to restore the national economy during the COVID-19 pandemic, it must be done in collaboration and mutual cooperation, not working separately.

Moreover, MSMEs are the backbone of the economy and as a pillar that determines the Indonesian economy.

We continue to be committed to helping MSMEs in Indonesia. And we've been doing that for a long time, "he said.