Wednesday, 20 October 2021 | 13:43 WIB

Indonesia Cooperate with Japan to Boost Small Industry Development

Gita Wibawaningsih, Director General of SMI at the Ministry of Industry (kemenperin)

JAKARTA, NNC - Indonesia and Japan continue to strengthen the two countries’ cooperation in the industrial sector. Through the Ministry of Industry, the Indonesian government cooperates with Japan International Cooperation Agency (JICA) in the implementation of small and medium industry (SMI) development program in several potential areas in Indonesia.

This program is called "The Project of Small and Medium Industry Development Based on Improved Service Delivery," and will be held in five provinces. The provinces are Bangka Belitung for the development of pewter tin handicraft products in West Bangka Regency, Southeast Sulawesi (tofu and tempe in South Konawe) , South Sulawesi (Silver and gold in Makassar), Papua (coffee processing in Dogiyai District), and East Java (ship component industry and metal casting in Pasuruan).

"Previously, JICA and the Directorate General of IKM Kemenperin have cooperated in five provinces in 2013-2016," said Gita Wibawaningsih, Director General of SMI at the Ministry of Industry on Tuesday (12/26/2017).

The five provinces are North Sumatra for Ulos weaving product development program, Central Java with metal component product, Central Sulawesi with agro products such as chocolate and rattan, East Java with footwear product, and West Kalimantan with processed aloe vera or aloe vera.

"The selection of regions for the development of IKM is based on several things, among them the source of support, the development of strategic themes, and the development of affirmative themes," said Gati.

The sources of support in question include state budget availability or synchronization of deconcentrated budget, and special allocated funds.

In developing the strategic theme, Gati explains, it needs strengthening linkage between supporting industries and large scale industry, followed by empowering industrial entrepreneurs and developing international market.

Meanwhile, the development of affirmative themes, considered in the underdeveloped area or border. "From these considerations, three provinces are chosen to be the initial target of the follow-up program, namely South Sulawesi, East Java (East Java) and Papua," he added.

Gati hopes that this program will increase the productivity and competitiveness of SMEs in the region to be more competitive in the domestic and international market.

"For that, the central government also involves the local government through the dissemination of the concept of cluster development and the placement of practical facilitators by utilizing local resources," she concluded.