Ministry Of Industry Says IKM Can Absorb 13.11 Million Workers
JAKARTA - The Ministry of Industry (Kemenperin) reports that small and medium industries (IKM) in Indonesia until the third quarter of 2024 have absorbed 13.11 million workers or 65.52 percent of the total workforce in the industrial sector.
The Director General of Small, Medium and Multifarious Industries (IKMA) of the Ministry of Industry, Reni Yanita, detailed that of the 13.11 million workers, 1.02 million people were absorbed by the medium industry and 12.09 million small industries.
Reni added, while the total number of entrepreneurs in the IKM sector is currently 4.52 million business units.
"There are about 99.77 percent of business units in Indonesia on a small and medium scale. In total, 4,522,684 units are able to absorb nearly 13,111,049 workers," said Reni in a Hearing Meeting (RDP) with Commission VII DPR at the Parliament Complex, Senayan, Jakarta, written Tuesday, February 4.
Reni added, of the total business units and labor absorption, IKM entrepreneurs in the country contributed to the growth rate of gross domestic product (GDP) in the processing industry by 4.72 percent on an annual basis (yoy) and contributed to the national GDP as a whole of 3.69 percent.
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However, Reni did not deny that the contribution of IKM to the yield value (output) of the non-oil and gas processing industry was still relatively small, which was only 21.53 percent.
"If we look at the value of the IKM output on the non-oil and gas processing industry, we still need to increase it again, because it is recorded in data in the third quarter of 2024 that is still 21.53 percent," he said.
As for the distribution of IKM business units based on provinces, East Java is the largest, reaching 982,269 IKM, followed by Central Java 865,992 IKM and 647,342 IKM units in West Java.