The Ministry Of Industry Optimizes Revitalization Of IKM Centers To Stimulate Exports Of Skin Processing Products

Illustration (Photo: Doc. ANTARA)

The Ministry of Industry (Kemenperin) optimizes the role of small and medium industrial centers (IKM) as a means to support the production of the skin processing industry, through a revitalization program to increase exports of these products.

"To increase the productivity and competitiveness of IKM, the Ministry of Industry continues to aggressively spur the development of IKM centers in all corners of the country," said the Director General of Small, Medium and Multifarious Industries (IKMA) of the Ministry of Industry, Reni Yanita, as reported by ANTARA, Monday,

One of the IKM centers that has been revitalized by the Ministry of Industry is the IKM Kulit Manding Center through the UPTD Ndalem Kulit Jogja (NKJ) located on Jalan Parangtritis KM 11, Manding, Bantul, Yogyakarta.

He conveyed that the IKM center was revitalized using the Special Allocation Fund (DAK) funding scheme in 2024 which was carried out in the form of building construction, engine and equipment procurement, HR development activities and competitiveness, management and technical activities, partnership development, and increasing export market access.

Reni explained that the development of the IKM center is expected to create a multiplied effect for strengthening the industrial ecosystem as a whole, including through downstreaming local raw materials into quality products, as well as developing the potential of the IKM community in certain areas.

Reni also said that the skin and skin products industry is one of the sub-sectors that has great potential in Indonesia. Nationally, the export of skin products and products from Indonesian skin in 2024 will reach 4.6 billion US dollars or IDR 77.2 trillion (exchange rate of IDR 16,801).

The export value is dominated by footwear from leather material amounting to US$3.1 billion or Rp52 trillion, followed by bag products and the like from leather materials amounting to US$1.1 billion or Rp18.47 trillion.

Based on BPS data, goods products from the skin are one of the four largest export commodities from the Special Region of Yogyakarta, so it can be stated that goods from the skin of the region have quite good potential and need to be increased again.