Collaborating With YDBA, Ministry Of MSMEs For The Replication Of The Micro Business Development Model For Entering Supply Chains

Secretary of the Ministry of MSMEs Arif Rahman Hakim. (Photo: Doc. ANTARA)

JAKARTA - The Ministry of Micro, Small and Medium Enterprises (MSMEs) together with the Dharma Bakti Astra Foundation (YDBA) replicate and develop a model for fostering MSMEs in Indonesia so that they can enter the industrial supply chain.

Secretary of the Ministry of MSMEs Arif Rahman Hakim stated that so far YDBA has successfully implemented a good method of fostering MSMEs, so as to bring them into the supply chain, especially in the automotive industry.

"What YDBA has developed in the automotive industry is very real, there are many small businesses that are part of the Astra supply chain, this can be an example of other industries," said Arif, quoted on Wednesday, January 6.

According to Arif, this is in line with the Government's big vision, especially the Ministry of MSMEs, to increase the ratio of MSME participation to the industrial supply chain, which currently only touched 4.1 percent.

"The government also hopes that SOEs that are already big and have supply chains so that they not only import from outside, but also build supply chains from domestic industries," said Arif.

For this reason, Arif plans to adopt the MSME development method that has been carried out by YDBA, through the incubation program of the Ministry of MSMEs in South Sumatra, Riau, Riau Islands, North Sulawesi, and Bali, but adjusted to the leading sectors in each region.

"These five provinces can be used as pilot projects in the next five years, for example in Riau Islands, they can focus on downstreaming the fisheries sector, or in Bali in the tourism sector, depending on the agreement between the Ministry of MSMEs and YDBA," said Arif.

Arif hopes that through the right coaching method, in the next five years, entrepreneurs or MSME entrepreneurs will be created who are independent and connected to supply chains.

If you want to produce MSMEs involved in the supply chain, experts need to be included in it, I suggest looking at the YDBA model. There needs to be a similar understanding, especially in understanding the development of industrial technology," he continued.

On the same occasion, Chairman of the YDBA Management Rahmat Samulo revealed that the weakness of the MSME sector today is that there has not been a strong supply chain between small businesses and large industries. For this reason, YDBA focuses on connecting MSMEs to the supply chain ecosystem.

"What YDBA does with all industries in Astra is to first educate, the QCD (Quality, Cost, and Delivery) is raised, and when it goes up, it can enter big industries. Don't just be introduced and left behind," said Samulo.

Samulo emphasized that the YDBA coaching method can be used as a reference or example, especially related to the involvement of large industries.

"Today, many manufacturing industries that used to be small-scale, such as workshops, have now become large industries, even in the past, only 2-3 workers have now become 60-70 workers, the engine has also been on an industrial scale. This is a tangible result of us bringing together MSMEs with large institutions," said Samulo.