IKM's Contribution To The Non-Oil And Gas Processing Industry Is Still Small, The Ministry Of Industry Reveals The Cause

JAKARTA - The Ministry of Industry (Kemenperin) said that there are five general problems faced by small, medium and various industries (IKMA). Thus, the contribution from this sector to the non-oil and gas processing industry only reached 21.53 percent in the third quarter of 2024.

This was conveyed by the Director General of IKMA at the Ministry of Industry, Reni Yanita, in a Hearing Meeting (RDP) with Commission VII of the DPR at the Parliament Complex, Senayan, Jakarta, Monday, February 3.

"Regarding the general picture of the problems of small and medium industries, here we convey that the first must be the limited ability of these IKMs to access the financing needed, be it financing or technology to other needs," said Reni.

Second, said Reni, the lack of knowledge about market segmentation and trends as well as the marketing strategy of IKM products.

The third problem is the limited technology capacity and productivity of IKM to achieve economic scale efficiency.

Fourth, the limited ability and expertise of human resources (HR) in carrying out effective production activities.

"Then (the fifth problem) is the low regeneration of human resources for several IKM sectors, such as the wastra and handicraft industries. This is also a problem with many perpetrators who are elderly and we are worried that the local wisdom will stop," said Reni.

"Then the challenge must also be that IKM is an inclusive part of strengthening the national industrial structure and playing a role in expanding job opportunities," he concluded.

To note, small and medium industries aka IKM have a big role in driving the wheels of the Indonesian economy.

This can be seen from the number of IKMs which reached 4,522,684 business units or contributed 99.7 percent of the total industrial business units in Indonesia.

The IKM sector itself has absorbed nearly 13,111,049 workers.

Therefore, the Ministry of Industry is committed to realizing the Medium Term Development Plan (RPJMN) for 2025-2029 in accordance with the set targets.

One of these efforts is to continue to improve competitiveness, partnership networks and expand market access for IKM so that it becomes part of the supply chain of large industries and other economic sectors.