Ministry of Industry Conducts Business Matching Boost Local Products

VIVA – The government continues to optimize the local market through the increased use of local products. This effort is under Presidential Instruction Number 2 of 2022 concerning the Acceleration of Increasing the Use of Domestic Products and MSME Products in the context of the Proud to be Made in Indonesia Movement.

Director General of Small, Medium, and Miscellaneous Industries (IKMA) of the Ministry of Industry, Reni Yanita in Jakarta, on Monday, December 5, 2022, said that the Ministry of Industry holds regular business matching between manufacturers and users of domestic products.

"The Ministry of Industry is mandated to accelerate the certification of domestic content levels (TKDN), identify the potential and readiness of domestic products, and hold regular business matching between manufacturers and users of domestic products," Reni Yanita explained.

The Ministry of Industry through the Directorate General of IKMA routinely holds business meetings to bridge between small and medium industry players (IKM) and large-scale industries.

"Some time ago, we held a business meeting for SMEs that produce electronic, electrical, and telecommunication products with SOEs in Bekasi," Reni remarked.

The business meeting was attended by 28 Small and Medium Industries (IKM) electronic, electrical, and telecommunication SMIs that produce LED and PJU lights, electrical network accessories and components, telecommunication devices, panel boxes, electronic boards, and others.

Meanwhile, the SOEs involved are Pertamina, Telkom, Telkomsel, PLN, PLN Icon+, Wika, Perumnas, and Housing Development (PP). There are also four Telkomsel vendors, namely PT Infrastruktur Telekomunikasi Indonesia (Telkominfra), PT Wiraky Nusa Telekomunikasi, PT Westindo, and PT Kinarya Utama Teknik.

"The purpose of this business meeting is to shorten the supply chain of SOEs to SMEs so that SMEs get a more decent profit margin and SOEs get more competitive prices, find out the needs of SOEs, standard requirements and procurement procedures, as well as open access to new partnerships between SOEs and SMEs in electronics, electricity, and telecommunications," Reni Yanita explained.

This business matching is a follow-up to the Memorandum of Understanding between the Ministry of KUKM, the Ministry of Industry, and the Ministry of SOEs on the Partnership of Cooperatives, MSMEs/IKM in the SOE Supply Chain on September 3, 2021.

“The Directorate General of IKMA from the Ministry of Industry together with the Ministry of Cooperatives and SMEs, and the Ministry of SOEs signed the memorandum of understanding (MoU) of understanding as a lifeline for the growth of small and micro industries in the fields of electronics, electricity, and telecommunications,” Reni explained.

This MoU is expected to be one of the breakthroughs to encourage the growth of small-micro industries in electronics, electricity, and telecommunications through joint coaching to improve the institutional quality and product quality of SMEs.

According to Reni, with coaching together by the three ministries, SMEs can be upgraded and qualified to meet the production standards expected by SOEs. Thus, the absorption of domestic products, especially products made by SMEs, can further drive the national economy.

"Therefore, we ask that SOEs together with us can provide input, evaluation, and guidance for continuous improvement for Indonesian electronics, electrical, and telecommunications SMEs," Reni Yanita said.

Reni assessed that business meetings are an effective way to recognize and know the potential of products from electronic, electrical, and telecommunication SMIs. Previously, through business meetings organized by the Directorate General of IKMA, as many as ten SMIs had established partnerships with SOEs.

"Among them are three SMEs with PTPN III, one SME Cooperative with PTPN V, five SMEs with PT PLN in 2021, and one SME with PT INKA," Reni Yanita added.

In this business meeting, the Directorate General of IKMA also held a panel discussion, open booth, and networking dinner. The open booth will be guided by the committee, so SOEs visit the IKM booths, and then provide reviews and evaluations of the potential of the IKM products. The reviews and evaluations given will be followed up through a coordination meeting between the Ministry of Industry, Ministry of State-Owned Enterprises, and SOEs/SOE vendors.

"It is hoped that through today's business meeting there will be more partnerships established. After the business meeting, it can be followed up with periodic evaluations to find out the progress and obstacles faced both in terms of SMEs and SOEs," Reni concluded.

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