Indonesia Explores Cooperation With The D-8 State Group, Discusses Increased MSME Capacity

UMKM illustration (Photo: dock. Antara)

JAKARTA - The Ministry of Cooperatives and SMEs (Kemenkop UKM) is exploring cooperation with 8 developing countries or Development 8 (D-8) in increasing the business capacity of cooperatives and MSME actors.

It is known that the D-8 Group consists of eight developing countries with a majority of Muslim population. The eight countries that wish to strengthen cooperation in the development are Bangladesh, Indonesia, Iran, Malaysia, Egypt, Nigeria, Pakistan, and Turkey.

During an audience with the Secretary General (Sekjen) D-8 Isikaka Abdulqadir Imam in Jakarta, Monday, November 20, Secretary of the Ministry of Cooperatives and SMEs (Sesmenkop UKM) Arif Rahman Hakim said this cooperation is expected to provide great benefits for the welfare of the community, especially MSME players and member state cooperatives D-8.

"This cooperation is very good for us to follow up, because it will provide many benefits for D-8 member countries. Each country has its advantages and potential," said Arif in a written statement received by VOI, Tuesday, November 21.

At the meeting, also Director I Administrative Legal and Internal Issues D-8 Ahmar Ismail, Director II Economy Implementation and External Relations D-8 Punjul Nugraha, and Diplomat Expert First Ministry of Foreign Affairs Pragusdiniyanto Soemantri were present.

Arif added that currently his party is trying to increase the capacity of MSME actors and cooperatives in the country.

"We have several priority programs. For micro-enterprises, we strengthen business legality, SMEs strengthen supply chains, while our cooperatives encourage them to become modern cooperatives and for entrepreneurs, we are targeting the creation of one million new entrepreneurs," said Arif.

Therefore, he assessed that the cooperation that will be explored by the D-8 organization is an important step to exchanging information regarding the empowerment of cooperatives and MSMEs, which has been carried out by member states D-8.

"I believe each country has very good experience in implementing policies," he said.

Meanwhile, Secretary General D-8 Isikaka Abdulqadir Imam said the D-8 organization would also focus on developing MSMEs by involving all D-8 members, including Indonesia.

"MSMEs have an important role in economic development in all D-8 countries. Even in Indonesia, 99 percent of business actors are dominated by MSME actors. I welcome to immediately hold the first meeting in 2025," he said.

He also targets that trade in MSME products between D-8 countries and in the global market can reach 500 billion US dollars by 2030

"The development of MSMEs in D-8 members is an important sector to improve, and this is important for the welfare of the community," he concluded.