The Welfare Of IKM, The Ministry Of Industry Reminds The Regional Government To Optimize The Budget For Deconcentration This Year

Director General of IKMA at the Ministry of Industry, Reni Yanita. (Photo: Doc. Kemenperin)

BEKASI - The Ministry of Industry (Kemenperin) through the Directorate General of Small, Medium, and Multifarious Industries (IKMA) reminded local governments to optimize the absorption of the deconcentration budget in order to increase the competitiveness of Small and Medium Industry (IKM) products at the domestic level to penetrate the global market.

The Director General of IKMA at the Ministry of Industry, Reni Yanita, said that the central government through the Ministry of Industry has disbursed a deconcentration budget of IDR 49.05 billion this year.

The declaration budget is distributed to local governments under the management of the local Industry Service which is focused on implementing three main aspects of IKM empowerment.

These three aspects include coaching through the One Village One Product (OVOP) activity, handling extreme poverty, and data collection on Small and Medium Industries (IKM) in every province in Indonesia.

"We hope that the use of deconcentration funds can revive the IKM sector which has been affected by the COVID-19 pandemic, so that it continues to produce to meet the needs of the domestic market to exports, and make a significant contribution to the Indonesian economy," said Reni in her official statement, Saturday, February 11.

Reni appreciated the local government for actively trying to foster and improve the competitiveness of IKM. He also appreciated the performance of the realization of 20 provinces that have implemented the deconcentration budget with the realization above average.

There are five provinces that are included in the top five, including Bengkulu, North Kalimantan, East Nusa Tenggara, Central Sulawesi, and West Sulawesi.

The performance of the deconcentration activity in the field of industry has grown 4,579 new entrepreneurs (WUB), with a total of 2,572 WUBs of whom have obtained business legality, throughout 2022.

"The realization of the IKMA Directorate General's budget in 2022 will reach 98.68 percent, with the realization of the deconcentration of 97.97 percent. It is recorded that there is a decon work unit (satker) whose realization is still below the average (under 91.20 percent) and five provinces below the average realization of the Directorate General of IKMA (under 97.05 percent)," said Reni.

In addition, the Directorate General of IKMA has fostered 1,574 OVOP centers, as well as facilitated product development implemented to 1,133 IKM actors.

The realization of the IKMA Directorate General's budget in 2022 reached 98.68 percent, with a deconcentration realization of 97.97 percent.

The Directorate General of IKMA has also held various activities, with the achievement of 13,220 new entrepreneurs growing, facilitating exhibitions for 306 IKM players with total transactions during the exhibition reaching Rp46.9 billion, as well as facilitating the application of industrial revolution 4.0 technology to 20 IKM.

In addition, as many as 99 IKM players have received machine and/or equipment restructuring facilities with a total value of IDR 10.86 billion.

There is also facilitation of SNI certification given to 41 IKM, facilitation of ISO certification to 13 IKM, facilitation of registration of Intellectual Property to 472 IKM actors, facilitation of HACCP to 29 IKM, and facilitation of partnerships to 67 IKM actors.