Indonesia's Minister of Cooperatives and Small and Medium Enterprises (Menkop UKM), Teten Masduki, urges micro, small, and medium enterprises (MSMEs) to engage in downstream processes. He states that President Joko Widodo has directed him to shift the focus of MSME exports from raw materials to value-added finished or semi-finished goods. Teten emphasized the need for MSMEs to produce import-substitute products. He mentioned ongoing pilot projects in different regions, such as coconut downstream processing in Minahasa (North Sulawesi), rubber commodities in Kukar (East Kalimantan), and beef commodities in Kupang (East Nusa Tenggara). To ensure successful downstreaming, Teten has encouraged local governments to assess their respective commodity strengths and enhance the role of groups and cooperatives. Micro sector, responsible for 97% of national employment, largely informal, is viewed as crucial. Teten's strategy to promote MSME downstreaming includes improving job quality, aligned with Indonesia's goal of achieving a per capita income of USD 12,000 by 2045. Moreover, the policy of allocating 40% of the national and regional budgets (APBN and APBD) to purchase local products is credited for stimulating MSME downstreaming. Teten affirms the government's commitment to attract foreign investments while emphasizing the essential involvement of MSMEs and cooperatives in the national downstreaming program.
Tuesday, 15 August 2023 02:54
Beyond Raw Material Exports, Minister of Cooperatives and SMEs Urges SMEs to Embrace Downstream Activities.
