Coordinating Minister For SMEs Prepares 5 Fractions For MSMEs To Transform, Realizes Advanced Indonesia

JAKARTA - The Ministry of Cooperatives and SMEs (Kemenkop UKM) is preparing five foundations for MSME players to transform into more value-added and high productivity.

Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki said the draft development of MSMEs in the future is economic transformation through increased productivity.

MSME actors are encouraged to consolidate in the platform of cooperatives, so that the economic scale is achieved and implement technology and innovation in running their business.

Therefore, his party has prepared five foundations for the transformation of MSMEs with more added value and high productivity. First, increasing the national ratio in a planned manner through the initiation of Entrepreneur Hubs.

"Second, strengthening the micro-small business scale through cooperative-based corporatization of farmers and fishermen, for example, red food oil per 1,000 hectares (ha) of people's oil palm plantations and the Solar program for Fishermen Cooperatives (SOLUSI)," said Teten in his official statement, Friday, September 6.

Third, strengthening innovation and technology in industrial supply chain schemes through joint production houses managed by cooperatives. Fourth, namely improving the quality and competitiveness of small micro-business products through packaged house services.

"The fifth faction is financing innovation through the People's Business Credit (KUR) cluster, credit scoring and financing of cooperatives in the Ril sector through LPDB-KUMKM," he said.

According to Teten, these five foundations are the capital for Indonesia to go to developed countries. Given, Indonesia targets to achieve revenue per capita of up to US$30,000 per year to reach Indonesia Gold 2045.

"This may improve the quality of employment opportunities by 97 percent by MSMEs so that they can increase," he said.