SMIs contribute significantly to Indonesia's exports: Hartarto

SMIs contribute significantly to Indonesia's exports: Hartarto

Coordinating Minister for Economic Affairs Airlangga Hartarto. (ANTARA/HO-Kemenko Perekonomian/pri/rst)

The positive performance of Indonesia's exports cannot be separated from the role of various parties, including the contribution of IKM players, who were able to survive in the midst of the COVID-19 pandemic
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that small and medium-scale industries  (SMIs) are among major contributors to Indonesia's positive export performance.

Indonesia's exports in August 2021 were valued at US$21.42 billion, an all-time high since US$18.60 billion recorded in August 2011.

"The positive performance of Indonesia's exports cannot be separated from the role of various parties, including the contribution of IKM players, who were able to survive in the midst of the COVID-19 pandemic," Minister Hartarto noted on Thursday.

The minister remarked that the contribution of IKM players to Indonesia's exports was apparent from the increase in the exports of two commodities based on the IKM sector: timber and wood products(HS 44) and furniture (HS 94).

HS 44 clocked a 18.31-percent (yoy) growth, while HS 94 grew to 30.12 percent (yoy) during the January-July 2021 period.



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"These two commodities are also included in the 20 main contributors to Indonesia's exports throughout 2021," he noted.

Exports of the HS 44 commodity were valued at US$2.55 billion and ranked 12th, contributing 2.12 percent to the total exports, while HS 94 exports amounted to US$1.63 billion, being placed at the 19th position, with a share of 1.36 percent of the total exports.

Hence, Hartarto emphasized that the contribution of IKM through the exports of HS 44 and HS 94 should be commended through several key factors that the government continues to monitor.

These key factors comprise the availability of adequate containers and the stability of affordable freight costs as well as the ease of processing the Timber Legality Verification System (SVLK).

Maintaining price stability and the availability of wood supplies to the industry, smooth integrated immigration permits for inspectors for overseas buyers, as well as improving product quality and human resource expertise are also important for the development of IKM.


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Furthermore, technology facilities and production infrastructure, increased market access through exhibition and promotion facilitation, and easy access to financing for expansion are also required by IKM to export their goods.

"The government along with all stakeholders continue to work on various programs and incentives that are relevant to export-based IKM," he affirmed. 

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