The Ministry Of Industry Claims Material Center As A Solution To Fulfill The Standard Needs Of IKM Automotive Components

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Industry (Kemenperin) through the Directorate General of IKMA initiated the formation of a material center as a center for the procurement of raw materials for IKM players in Majalengka and its surroundings (Karawang, Cikarang, Bekasi) this year.

"In 2018, the Directorate General of IKMA together with the Tegal Regency Government also operated a material center located in the Takaru Takaru Regency, Tegal Regency, Central Java, to provide metal raw materials for automotive component IKM," said the Director General of Small, Medium and Multifarious Industries (IKMA) of the Ministry of Industry, Reni Yanita, at the launch of the development of the material center in Majalengka, West Java, Thursday, November 17.

Material center is known to play an important role in optimizing the provision of raw materials for IKM, helping to increase the competitiveness of IKM so that it can enter the national industrial supply chain, and expanding job opportunities for people around the center.

Therefore, the Ministry of Industry (Kemenperin) continues to be committed and collaborate with many parties to make it easier for SMEs to access quality raw materials and still at competitive prices.

"This collaboration is one of the implementations of a memorandum of understanding signed by the Minister of Industry and the Chairman of KADIN on November 1, 2022, regarding Link and Match in the context of IKM partnerships with large industries. Of course, the partnership was also started in the procurement of raw materials needed by IKM," explained Reni.

Meanwhile, the IKM Majalengka material center, which is currently being developed, is located in Block A3 of the SIKIM Majalengka area on Jalan Lingkar Utara, Cisarusung, Majalengka Regency.

SIKIM Majalengka consists of 12 unit blocks (A1-A4, B1-B4, C1-C4) with a building area of about 700 square meters. SIKIM Majalengka can be used at the end of December 2021.

"Currently, SIKIM Majalengka is almost full of IKM majority from the Association of Small and Medium Industries of Automotive Components (PIKKO). With the material center in SIKIM, we really hope that IKM in Majalengka can be integrated and more easily collaborate to move forward together," said Reni.

Reni emphasized that the development of the material center at SIKIM Majalengka is also in line with the government's policy on Increasing the Use of Domestic Products (P3DN) and import substitutions.

This policy encourages the transportation equipment industry to enter the four industrial sectors with the largest growth in the third quarter of 2022, which is 10.26 percent.

On the other hand, continued Reni, to increase the competitiveness of the automotive industry, the Ministry of Industry through the Directorate General of IKMA took steps to strengthen institutional capacity.

"This is reflected in the development of the material center, one of which is the material center in the SIKIM Majalengka environment," he explained.

Then, he added, to realize the ease of accessing quality raw materials at competitive prices, commitment and collaboration from all parties are needed so that the domestic industry, especially SMEs, can provide quality and competitive automotive components.

"As one of the main sectors, the Ministry of Industry continues to boost the growth of the automotive industry in order to make a greater contribution to the national economy," he added.

Later, said Reni, the management of the material center in Majalengka will follow the scheme that was previously implemented in Tegal.

The raw materials in the Majalengkat material center while coming from the CSR scheme of PT TT Metals Indonesia in the form of cut remains, the same as the first time it was done in Tegal.

In the future, continued Reni, there will be several partners who are ready to become suppliers of raw materials.

"Hopefully, Majalengka's Material Center will not only be able to supply steel raw materials, but also plastic, aluminum, rubber, chemical credit, and others according to the needs of the IKM production process," he concluded.