Teten Calls The Government Must Provide Technology To Downstream MSMEs

Menkop UKM Teten Masduki (Photo: Antara)

JAKARTA - Minister of Cooperatives and SMEs Teten Masduki emphasized the importance of downstreaming products by MSMEs as a strategic step to create quality jobs. Moreover, in the midst of the current threat of deindustrialization.

Teten emphasized that MSMEs should not only be seen as producers of processed products such as crypts or krumpuk, but also have much greater potential to become suppliers of quality raw materials for large industries, both at home and abroad.

This Hilirisasi sekarang harus dilakukan UMKM. Pemerintah harus menyediakan teknologinya karena UMKM tidak punya, kata Teten mengutip Antara.

Teten said that the paradigm for MSMEs also needed to be changed. MSMEs not only act as the support for the family's economy, but also become the driving force for national economic growth and part of the industrialization process.

According to Teten, one of the keys to the success of MSMEs in increasing productivity and competitiveness is adopting modern technology.

Teten gave an example, skin craft MSMEs in Garut have shown a significant improvement in product quality after the government facilitated the construction of a Joint Production House (RPB) equipped with modern technology.

Not only that, but the government is also building joint production facilities to process nilam in Aceh, which aims to increase the selling value of Indonesia's leading commodities.

Nilam, or better known as patchouli oil, is one of the largest commodity producing atsiri oil in the world and is widely used in the perfume industry.

Although Indonesia is the main supplier of world perfume raw materials with a contribution of 96 percent, Teten said that the quality of Nilam exports is still not optimal due to technological limitations. As a solution, the government initiated the construction of joint production houses equipped with modern equipment.

He further said that there are still many types of herbal plants that can be processed into extract needed by the cosmetic and pharmaceutical industry spread throughout Indonesia.

If the manufacturing industry is still concentrated in Java, then the natural resource-based industry, according to him, will be more evenly distributed throughout the region, so that the goal of equitable development will be achieved.

So we have to look at MSMEs as a forum that provides quality job opportunities. There must be a strict investment policy. If the manufacturing industry (investors) are expected to provide jobs that do not come, MSMEs are the only ones who can provide jobs," said Teten.