The Ministry Of Industry Spends A Series Of Technical Structures For The Sake Of The IKM Competitiveness Dongkrak

Director General of Small, Medium, and Multifarious Industries (IKMA) of the Ministry of Industry Reni Yanita. (Photo: Doc. Ministry of Industry)

JAKARTA - Throughout 2022, the Ministry of Industry through the Directorate General of Small and Medium Industries, and Aneka (IKMA) has carried out various programs to increase the competitiveness of the IKM sector, so that it can make a greater contribution to the national economy.

Please note, throughout 2022, the number of IKM has reached 4.4 million business units or 99.7 percent of the total industrial business units in Indonesia.

So far, the IKM sector is known to have played a very important role in efforts to absorb labor and distribute welfare.

"Through the various strategic programs we have, we are trying to further spur the competitiveness of IKM in all lines, from upstream to downstream," said the Director General of Small, Medium, and Multifarious Industries (IKMA) of the Ministry of Industry Reni Yanita in Jakarta, Friday, January 6.

The Director General of IKMA said that the IKM sector had absorbed up to 12.39 million workers or 66.25 percent of the total workforce in the industrial sector.

"The IKM sector has also contributed 21.37 percent of the total output value of the processing industry," he said.

According to Reni, throughout 2022, the Directorate General of IKMA has carried out various competitiveness improvement programs in the IKM sector, such as through technology facilitation and technological infrastructure, improving product quality and expertise of IKM players, and increasing market access.

"In technology facilitation, the Directorate General of IKMA has facilitated IKM through a restructuring program, namely discounting the purchase price of machines and/or equipment to IKM," he explained.

The price discount given is 25 percent of the purchase price for foreign-made machines or equipment. Furthermore, a discount of 40 percent of the purchase price for domestically made machines or equipment.

A total of 99 IKM players are known to have obtained a machine or equipment restructuring program in 2022.

"Based on the results of monitoring and evaluation, this restructuring program shows a 103 percent increase in IKM production capacity, so that business performance can increase," explained Reni.

In an effort to improve product quality and expertise of SME players, said Reni, her party has facilitated packaging and brand designs for 189 IKMs or increased compared to 2021 which only reached 100 IKMs.

In addition, the Directorate General of IKMA also provided printed packaging assistance to 71 IKMs.

"There is also facilitation of Hazard Analysis Critical Control Point (HACCP) certification for 29 food IKM and facilitation of Intellectual Property registration through the Intellectual Property Clinic of the Directorate General of IKMA for 497 brands," he said.

"Not only that, assistance has also been carried out, focus group discussions, and socialization for furniture IKM material centers in Jepara and for metal IKM in Tegal," he said.

Meanwhile, until the end of the third quarter of 2022, there were 4,202 IKMs that had joined the e-Smart IKM program, and 839 IKMs successfully onboarded in the marketplace through the program.

A total of 12 IKMs have also applied 4.0 technology to the production line.

"One of the pilot projects for the application of 4.0 technology in the production line is carried out by food SMEs that implement cloud computing, big data & Artificial Intelligent to improve the quality of raw materials, efficiency in the production process and forecast product sales trends," he added.

After joining the IKM e-Smart, IKM is entitled to digital literacy workshop, digital marketing, digital marketing onboarding, e-commerce optimization, and business development.

In supporting IKM to be onboarded to the marketplace, the Directorate General of IKMA synergized the e-smart IKM program with the Proudly Made in Indonesia National Movement (Gernas BBI).