Strengthen The MSME Supply Chain, KemenkopUKM Appreciates Sido Muncul

JAKARTA - The Ministry of Cooperatives and SMEs (KemenkopUKM) bridges the strengthening of the supply chain for small micro-stakeholders (UMK) of herbal raw materials owned by MSME players who are members of the Bondowoso Agrofarm Cooperative with PT Industri Jamu and Pharmacy Sido Muncul Tbk.

"We would like to thank PT. Sido Muncul for providing access to MSMEs for his belongings and for the local government, we really hope for his cooperation," said Deputy for Micro Business at the Ministry of Cooperatives and SMEs Yulius during the launch of the Supply Chain Strengthening Program for the Commodity of Herbal Raw Materials in Bondowoso, East Java, last Wednesday, May 17, as reported by Antara.

Yulius said that the strategic partnership between UMK players and large businesses is one of the government's efforts to improve the MSME class. Currently, only 7 percent of the partnerships between UMK and large businesses and the SME participation ratio that have been included in the global supply chain are only 4.1 percent.

Through the Bondowoso Agrofarm Cooperative partnership with PT Industri Jamu and Pharmacy Sido Muncul Tbk, now the results of the production of MSME players can be channeled directly to Sido Muncul to be used as one of the raw materials for making herbal medicine.

KemenkopUKM also hopes that the strategic partnership that has been outlined in the Cooperation Agreement can encourage SMEs to increase their productivity.

Karena dia terdorong untuk melakukan produk-produk yang berkualitas. Transfer teknologi dan pengetahuan, jadi pengusaha kecil belajar dari pengusaha besar. Juga untuk menjaga stabilitas harga karena seringkali UMKM terdekasi oleh usaha besar dan kita mendorong agar barang-punya sudah ada off taker, ucapnya.

After the UMK players were linked to supply chains or offtakers such as PT Sido Muncul, in terms of capital, KemenKopUKM also prepared loans for Bondowoso farmers through the People's Business Credit (KUR) scheme for supply chains-based clusters and the Revolving Fund Management Institution (LPDB) for Cooperatives with 3 percent interest.

The LPDB does not provide loans to MSMEs but provides loans to cooperatives, cooperatives provide loans to MSMEs. So there are two sources of funds that we take advantage of, first KUR which is also for MSMEs and cooperatives," said Yulius.

On that occasion, the KemenkopUKM through BRI gave KUR clusters based on supply chains to three turmeric farmers with a value of IDR 50 million each.

It is hoped that the distribution of KUR clusters based on supply chains can accelerate the distribution of MSME loans while still paying attention to the health level aspect of channeling banks, namely the low achievement of Non Performing Loans (NPL).

Director of PT Sido Muncul, Irwan Hidayat who was present virtually admitted that he welcomed the collaboration with the Bondowoso Agrofarm Cooperative even though the number of products to be sent to Sido Muncul was still limited.

"For the amount, for me the most important thing is to start over a large number to continue to be small. Thank you very much for your cooperation," he said.

As for the initial stage of cooperation, the Bondowoso Agrofarm Cooperative will send 5 tons of dry Lempu in a span of 3 months to Sido Muncul. In the future, the Bondowoso Agrofarm Cooperative also plans to send turmerics which are the leading commodities in Bondowoso.