Here's How The Ministry Of Industry Improves IKM Capabilities Throughout 2023

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

JAKARTA - The Ministry of Industry (Kemenperin) is proactive in increasing the capabilities of the small and medium-sized industrial sector (IKM) through various technology facilitation programs and technological infrastructure, improving the quality of IKM players' products and expertise as well as increasing market access throughout 2023.

The Director General of Small, Medium and Multifarious Industries (IKMA) of the Ministry of Industry, Reni Yanita, said that the IKM population had reached 4.19 million business units or contributed 99.7 percent of the total industrial business units in Indonesia.

With this population, said Reni, IKM contributed to the absorption of labor, which was 65.52 percent of the total national industrial workforce.

"In addition, it contributes up to 21.44 percent of the total industrial output value, so it really plays an important role in equitable community welfare efforts and poverty alleviation," he said in a written statement received by VOI, Thursday, January 4.

The IKMA Directorate itself has facilitated 65 IKMs to obtain machine restructuring program facilities and production equipment with a total restructuring value of IDR 7.9 billion, of which the total investment value of machinery/equipment made by IKM players is IDR 60.7 billion.

"Based on the results of monitoring and evaluation of the IKM machine/equipment restructuring program, it shows a 103 percent increase in IKM production capacity, so that its business performance can increase," said Reni.

He added that his party also increased competitiveness through facilitation and guidance to 89 IKM centers, including 21 IKM centers from Central Satker activities and 68 IKM centers from the use of the Special Allocation Fund (DAK).

In addition, based on the evaluation results, it can be seen that after the HACCP certification, the number of food IKMs that exported increased by 23 percent and as many as 35.7 percent of IKM succeeded in expanding the market.

Throughout 2023, the Directorate General of IKMA has facilitated assistance in HACCP certification to 11 food and beverage IKMs.

Not only that, the Directorate General of IKMA also facilitated the certification of salt SNI to 4 IKM, certification of child toys for 15 IKM and SNI baby clothes for 20 IKM.

The facilitation for Intellectual Property Protection (KI) registration through the KI Clinic, Directorate General of IKMA, has been given to 611 IKM.

In addition, it is also provided with design and packaging print facilitation through the Trademark and Packaging Clinic of the Directorate General of IKMA to 319 IKM.

In accordance with the movement to increase the use of domestic products, the Directorate General of IKMA also provides technical guidance and certification of the Small Industry Domestic Content Level (TKDN IK) to 853 IKM.

"Based on TKDN IK monitoring as of December 27, 2023, 8,030 certificates have been issued," said Reni.

Regarding efforts to expand market access, Reni assessed that until the fourth quarter of 2023, 4,057 IKMs had joined the IKM e-smart program.

A total of 458 IKMs have been onboarded in the marketplace, and seven (7) IKMs have been facilitated by the Directorate General of IKMA to identify and implement industrial technology 4.0 in the production line, including the preparation of the Warehouse Management System Customer Management (CRM) application and the preparation of the Enterprise Resource Planning (ERP) which includes production, marketing and finance.

"We also continue to facilitate IKM players in national and international exhibitions. A total of 374 IKMs have participated in various events held in 2023, such as IFEX, JIFFINA, National Batik Day (HBN), Trade Expo Indonesia, Inacraft, Ambiente in Germany, Gebyar IKMA 2023, and several other activities," said Reni.

According to Reni, efforts to strengthen IKM in the supply chain of the national manufacturing industry are also carried out through link and match and optimize cooperation agreements with ministries or institutions.

A total of 214 IKMs have been facilitated through business matching and link and match with large industry (ATPM tiers) and other economic sectors. To date, as many as 20 IKMs have entered into partnerships to the stage of commitment or contract.

It is known, throughout 2023, the Directorate General of IKMA has trained 28,802 new entrepreneurs (WUB) of IKM.

From this figure, the Directorate General of IKMA has facilitated the legality of the business for 6,744 IKM WUBs.