This Is The Ministry Of Industry's Step On Expanding The IKM Market

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) said that small and medium industries (IKM) have a big role in driving the wheels of the Indonesian economy.

This can be seen from the number of IKMs which reached 4.5 million business units or contributed 99.7 percent of the total industrial business units in Indonesia.

The IKM sector has absorbed 12.37 million workers.

"In the third quarter of 2024, the IKM sector contributed up to 3.50 percent of the total Gross Domestic Product (GDP) of the National and 20.97 percent of the total industrial output value," said Director General of Small, Medium and Multifarious Industries (IKMA) of the Ministry of Industry Reni Yanita in a written statement, Thursday, December 5.

The Ministry of Industry, continued, is also committed to realizing the Medium Term Development Plan (RPJMN) for 2025-2029 in accordance with the set targets.

One of these efforts is to continue to improve competitiveness, partnership networks and expand market access for IKM so that it becomes part of the supply chain of large industries and other economic sectors.

Reni assessed that the large contribution from the IKM needed to be continuously improved by involving various relevant stakeholders.

One of them is through efforts to encourage partnership networks and expand access to the IKM market.

"We know that many Indonesian IKM players are ready and worthy to appear on the national and global stage and this collaboration is established to provide a proper stage for IKM players," he said.

The forms of cooperation between the Directorate General of IKMA and PT Rumah Mebel Nusantara include providing opportunities for 11 leading IKM actors assisted by the Directorate General of IKMA to appear in six IKEA outlets in Indonesia.

The IKM perpetrators who were selected to participate in the Teras Indonesia program will go through a rigorous curation process and have received assistance and development facilitation from the Directorate General of IKMA.

"The IKM that we propose to IKEA for the Teras Indonesia program is the superior IKM that has been selected, so that it is declared legitimatical, the business license is clear, the product is of good quality and meets the mandatory requirements and the reputation is also good. Thus, consumer satisfaction is guaranteed," said Reni.

Later, selected IKM will get space or location at IKEA outlets to market their products. In addition, IKM will also receive training from IKEA regarding retail trading.

"All facilitation for these IKMs is provided free of charge and the proceeds from the proceeds will be fully distributed to IKM owners, free of charge and any deductions," he concluded.