JAKARTA - The Ministry of Industry (Kemenperin) is designing regulations regarding the Raw Material and Auxiliary Material Provider Center (PPBB).
The formulation of the policy is carried out to ensure the availability of raw materials and auxiliary materials for small and medium industries (IKM).
Minister of Industry (Menperin) Agus Gumiwang Kartasasmita revealed that the development of IKM still faces a number of challenges.
Starting from limited access to raw materials, technology, human resources, marketing, and capital.
On the other hand, a number of raw materials and/or auxiliary materials needed by IKM still have to be met through imports.
This condition has the potential to increase production costs, reduce competitiveness and hinder the sustainability of the IKM production.
"The obstacles that IKM often faces in obtaining imported raw materials include limited local raw material supply with certain specifications and standards, relatively small import volumes, making it difficult to meet import requirements, limited direct access to domestic producers, and the complexity of import licensing documents," said Agus through a written statement, Monday, January 19.
Therefore, the Ministry of Industry is drafting improvements to the PPBB policy for SMEs, as stipulated in the Minister of Industry Regulation (Permenperin) Number 21 of 2021.
"Policy reforms are carried out continuously to maintain the continuity of the IKM production process while adjusting to the dynamics of the business climate and the applicable positive legal provisions," he said.
To note, Government Regulation (PP) Number 28 of 2021 concerning the Implementation of the Industrial Sector in conjunction with PP Number 46 of 2023 provides space for IKM actors who cannot independently import to meet the needs of raw materials and/or auxiliary materials through the Raw Materials and/or Auxiliary Materials Provider Center (PPBB).
In line with these provisions, the Ministry of Industry is designing a governance system for imports through the PPBB which regulates the mechanism for determining, importing, verifying the ability of SMEs, reporting, monitoring, and providing facilities through the Draft Minister of Industry Regulation concerning the Center for Raw Materials and/or Auxiliary Materials (RPermenperin).
The Minister of Industry was designed to provide ease for IKM business actors who have not been able to import independently so that they can still obtain guarantees for the supply of raw materials.
The scheme is implemented through a business entity that has a General Importer Identification Number (API-U) in accordance with the provisions of laws and regulations and has been designated as a PPBB by the Minister of Industry.
"To maintain the stability of the domestic industry, the import of raw materials and/or auxiliary materials through PPBB ensures that the distribution is targeted, because the import can only be distributed to SMEs who have a contract with PPBB," he said.
In the RPermenperin, PPBB is determined based on certain commodities along with a list of IKM served. This determination becomes the basis for PPBB in submitting import needs plans or import approvals for required commodities.
Meanwhile, Director General of Small, Medium and Multi-Industry (IKMA) of the Ministry of Industry, Reni Yanita, said that PPBB is a business entity that provides raw materials and/or auxiliary materials to meet the needs of IKM business actors.
PPBB must have a legal entity and be domiciled in Indonesia, have or control a storage space of at least 500 square meters in one location and serve at least five IKM business actors using raw materials or auxiliary materials according to the commodity groups regulated in the import regulation policy.
In order to simplify administration, the application for the establishment of PPBB is submitted through the National Industry Information System (SIINas).
With this policy, said Reni, it is hoped that business actors holding API-U will not experience difficulties in obtaining designation as PPBB.
However, the fulfillment of criteria and requirements must still be considered.
"Especially the obligation to report industry data periodically in SIINas for IKM to be served," he explained.
Through the utilization of PPBB facilities, he continued, SMEs that need imported raw materials and/or auxiliary materials are expected to be able to obtain supplies more easily, affordably and with quality.
In the future, the Ministry of Industry will also strive to provide various facilities or facilities for PPBB, both fiscal and non-fiscal.
"This step is expected to increase the productivity and competitiveness of IKM as well as support national economic growth," he added.
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