Thanks To Cooperation With JICA, The Ministry Of Industry Completes 8 IKM Digital Projects For Automotive Components

The Director General of IKMA of the Ministry of Industry, Reni Yanita, expressed his appreciation to one of the IKMs who took part in the cooperation program with JICA. (Photo: Doc. Ministry of Industry)

JAKARTA - The Ministry of Industry (Kemenperin) together with the Japan International Cooperation Agency (JICA) have successfully carried out eight digitalization projects for the Small and Medium Industries (IKM) of the automotive component that have an impact on market expansion.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the effort was a form of his party's commitment to increase the competitiveness of IKM in order to enter the large-scale industrial supply chain.

"This collaboration is expected to be a model of success that can be replicated by more IKM, so as to be able to expand its reach to the national and global automotive industries," Agus said as quoted from his written statement, Tuesday, August 26.

The Director General of Small, Medium, and Multifarious Industries (IKMA) of the Ministry of Industry, Reni Yanita, said the implementation project had been running for three months from April 22, 2025 to July 31, 2025.

"This cooperation program is a very good form of synergy and collaboration between the Government of Indonesia and Japan, which is a real example of how international partnerships can encourage the progress of the industrial sector," he said.

Reni expressed her appreciation to all parties, especially JICA as a strategic partner in the implementation of the program. The goal is also to answer global challenges that are increasingly demanding the use of technology, especially in the automotive component IKM sector.

"This digitalization implementation effort is in line with data from the Asian Development Bank (2022) which shows that the adoption rate of digital technology in the small and medium manufacturing sectors in Southeast Asia is still below 30 percent, far behind major companies that have exceeded 60 percent," said Reni.

This means that the data shows that there is still a technological gap that must be overcome together, which is a great opportunity to accelerate the digital transformation of IKM.

"Therefore, the Ministry of Industry will continue to seek strategic steps, one of which is the sustainability of cooperation with JICA," said Reni.

He hopes that in the future, the cooperation carried out will not only focus on the automotive industry sector, but also on wider commodity coverage, including seven priority industries on the implementation of Making Indonesia 4.0.

"Of course, on the IKM scale, it also penetrates the food and beverage industry sector; textiles; chemistry; furniture; electronics; metal; crafts; as well as other leading commodities due to the application of digitalization and automation in the sector will increase the consistency of product quality, efficiency of production processes and competitiveness in the international market," explained Reni.

Sementara itu, Senior Director of Economic Development Department JICA Okumoto Yasuyo menuturkan, proyek JICA yang dimulai sejak 2022 bertujuan untuk meningkatkan kolaborasi antara pelaku IKM komponen otomotif dan startup teknologi.

JICA also expressed its appreciation to technology startups that have provided digitalization training to suppliers and it is hoped that the implemented system can achieve 100 percent effectiveness.

According to Okumoto Yasuyo, digitalization is the first step to increase productivity, identify problems in real time and strengthen the competitiveness of IKM.

"In the future, JICA will provide policy recommendations to support the sustainability of this initiative," he concluded.

We hope that suppliers can continue their digitalization efforts, identify problems in real time, and continue to increase the company's competitiveness. Digitalization is the first step to increase productivity, identify problems in real time, and strengthen the competitiveness of IKM. In the future JICA will provide policy recommendations to support the sustainability of this initiative," said Okumoto.

The eight pairs of IKM with technology startups facilitated by the implementation of digitalization include PT Sebastian Jaya Metal; PT Arkha Industries Indonesia; PT Laksana Tekhnik Makmur; PT Eran Plastindo Utama; PT FNF Metalindo Utama; PT Sugi Jaya Utama; PT Itori Kreasindo Perkasa; and PT Armeta Kreasi Mandiri.

Meanwhile, the integrator system includes PT Takadam Ciptamandiri Nusantara; PT Sopwer Teknologi Indonesia; Ragdalion Technology; PT MyEco Innovation Indonesia; PT Stechoq Robotika Indonesia; and PT Trimitra Nusantara Sakti. The selected startup is assisted by the Ministry of Industry through the Startup for Industry (SFI) program.