Deputy Minister Of Industry Says 99.7 Percent Of IKM Has Absorbed 12.37 Million Workers

Deputy Minister of Industry Faisol Riza (Photo: Theresia Agatha/VOI)

JAKARTA - Small and medium industries (IKM) are said to have an important role in strengthening the industrial structure and contributing to national economic growth. This is because as many as 99.7 percent of the total IKM business units have been able to absorb 12.37 million workers.

This was stated by Deputy Minister of Industry (Wamenperin) Faisol Riza in his remarks at the 2024 Gebyar IKMA Award Award Award Award Award Award Award at Kota Kasablanka Mall, Jakarta, Thursday, November 14.

"There are 4.5 million business units, (as many as) 99.7 percent of the total industrial business units absorb 12.37 million workers based on the proportion of IKM. It's extraordinary," he said.

Faisol added, IKM has also contributed 20.9 percent of the total industrial output value in the country.

"Which shows that the strategic role of the IKM sector, especially in terms of increasing the added value of local products into labor absorption industrial products, equitable distribution of welfare and poverty alleviation, is proven," said Faisol.

Meanwhile, said Faisol, Indonesia also has a very big opportunity for demographic bonuses. This is because most of Indonesia's population is at productive age. In fact, by 2030, it is estimated that the working-age population of the Indonesian population will reach 70 percent of the demographic bonus.

"This should be a driving force for productivity and driving force to increase the production of the upcoming IKM," he said.

With the Award for the 2024 Gebyar IKMA Award, Faisol hopes that in the future IKM can grow independently and be able to answer the demands of changing times.

"By raising the theme of encouraging the independence of IKM through innovation and strengthening the industrial supply chain, (hopefully) it can encourage the development of innovative, competitive, and competitive IKM and can support supply chains. Thus, being able to answer the challenges that exist in the global market," he concluded.