The Ministry of Industry is proactively supporting small and medium industries (SMIs) to take part in the program to increase the use of domestic products through government procurement, including through business matching between industry and government, including SMIs already able to meet domestic needs.
“Kemenperin's task is to identify domestic products and domestic industry readiness, and to accelerate the listing of TKDN-certified domestic products in the electronic catalog. Many Indonesian producers or SMIs can produce goods needed by offices and schools. So let us choose to buy from local industry,” Minister of Industry Agus Gumiwang Kartasasmita said in Jakarta on Monday (25/4).
On 22–24 March 2022, Kemenperin held business matching between ministries/agencies and regional governments (provincial and regency/city) and industry associations and companies in Nusa Dua, Bali. The business matching was in line with Presidential Instruction No. 2 of 2022 on Accelerating Increased Use of Domestic Products and Products of Micro and Small Enterprises and Cooperatives, as part of the National Proud of Made in Indonesia Movement.
“The business matching is important to foster the political will of government and state-owned enterprise officials to increase domestic product spending,” the Minister said.
Promising SMI Products
The Director General of Small, Medium and Miscellaneous Industries (IKMA) at Kemenperin, Reni Yanita, said the most sought-after products during business matching, as recorded at dashboard.kemenperin.go.id/bisma, include infrastructure packages, buildings, food, vehicles, laptops and furniture.
“The challenge for furniture is that there must be demand to enter the e-Catalog. So SMIs need to prepare many product images for custom specifications for cabinets, meeting tables and work desks,” Reni said.
The Directorate General of IKMA also continues to coordinate with relevant agencies to identify spending needs of ministries/agencies and regional governments that SMIs can meet. Besides furniture, these include agricultural machinery, clothing and machinery.
The Directorate General of IKMA is also encouraging SMIs to join the Electronic Procurement Service (LPSE), the LKPP sectoral catalog and Bela Pengadaan so their products can be bought by ministries/agencies and regional governments. “SMI products are now included in four LKPP Sectoral Catalog categories: electrical equipment, other machinery and equipment, appropriate technology machinery/equipment, and hand tools,” she added.
Promising food and beverage products include processed foods, milk, simplicia and herbal drinks. There are also miscellaneous industry products such as educational toys, sports equipment, stationery and drawing supplies, cleaning supplies, clothing and leather SMI products such as batik, apparel, footwear and bags, personal protective equipment and goodie bags. Promising chemical and craft SMI products include hand sanitizer, disinfectant and crafts for home decor.
“Major products with large demand such as medical devices, agricultural and food processing machinery, and agricultural/plantation tools are also expected to be supplied by domestic industry, especially SMIs. SMIs can also supply lighting for buildings/hospitals/schools, street lighting, medical devices, local software and Industry 4.0 innovation products,” Reni said.
Reni hopes SMIs producing these promising goods can seize government spending opportunities by continuing to improve product quality and business capabilities. “We continue to run programs on HR competence, product quality development, standardization, machinery and equipment facilitation, and promotion and market access so SMIs can be competitive in domestic and overseas markets,” Reni said.
Kemenperin also took part in the second phase of business matching on 11–21 April 2022, coordinated by the Ministry of Cooperatives and SMEs, involving fostered businesses in a showcase of agricultural and heavy equipment products made by 32 companies fostered by the Directorate General of IKMA and the Directorate of Machinery and Agricultural Machinery Industries of the Directorate General of ILMATE.
With business matching continuing, the commitment value rose to IDR 220.80 trillion as of 25 April 2022, as shown on dashboard.kemenperin.go.id/bisma. The commitments comprise 34,123 domestic product packages involving 6,579 domestic producers. This business matching is targeted to finish on 31 May 2022, with total commitments of IDR 500 trillion.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia