The Government's Response To Small And Medium Industries Requires Easy Access To Baku Materials

JAKARTA - The government through the Ministry of Industry (Kemenperin) seeks to provide convenience for small and medium industry (IKM) players in carrying out their business activities.

The Director General of Small, Medium and Multifarious Industries (IKMA) of the Ministry of Industry, Reni Yanita, stated that this was evidenced by issuing Minister of Industry Regulation Number 21 of 2021 concerning the Center for Supply of Baku Materials and/or Importory Materials for IKM.

The cost of raw materials and auxiliary materials in the production component reaches 57 percent. This regulation is expected to be one of the challenges in increasing the competitiveness of IKM," he said in a written statement quoted on Sunday, September 11.

According to Reni, the government also regulates the existence of the Baku Material Supply Center in PP 28/2021.

It is stated that for IKMs that cannot carry out their own imports, it can be carried out by the Baku Materials Supply Center which has a Business Identification Number (NIB) which applies as a general importer identification number (API-U), as well as evidenced by the order contract from the IKM in question.

Import is only intended for IKMs that cannot import raw materials. Meanwhile, distribution is carried out based on a cooperation scheme between the central and regional governments," he said.

"Not only preparing facilities in the downstream sector related to packaging, distribution, and product marketing, the government is also preparing solutions for IKM players to make it easier to obtain affordable and quality raw materials, so as to increase productivity and competitiveness to support the recovery of the national economy," he said.