IKMs often face difficulties in accessing raw materials, some of which are not available domestically. However, they are also not able to carry out their own importsJakarta (ANTARA) - The Ministry of Industry is continuing to support small and medium industry players (IKMs) in carrying out their business activities, including in obtaining raw materials.
"IKMs often face difficulties in accessing raw materials, some of which are not available domestically. However, they are also not able to carry out their own imports," director-general of small, medium, and miscellaneous Industries (IKMA) at the Industry Ministry, Reni Yanita, said in a statement received here on Saturday.
Besides preparing facilities in the downstream sector related to product packaging, distribution, and marketing, the ministry is also providing solutions to IKMs to easily obtain affordable and quality raw materials as part of an effort to increase productivity and competitiveness to support national economic recovery.
Data from the Directorate General of IKMA has shown that raw materials and auxiliary materials account for 57.31 percent of the production costs of IKMs. The difficulty in obtaining raw materials is one of the challenges to increasing the competitiveness of small and medium enterprises (SMEs).
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Therefore, to overcome the problem, the Ministry of Industry has issued Minister of Industry Regulation Number 21 of 2021 concerning centers for supplying raw materials and/or importing auxiliary materials for small and medium industries.
"The regulation is an elaboration of the mandate of Government Regulation (PP) Number 28 of 2021 concerning the implementation of the industrial sector," Yanita informed.
Furthermore, the government is also trying to simplify business licensing, as well as facilitate, protect, and empower micro, small, and medium enterprises (MSMEs), in accordance with the Job Creation Law.
"The law stated various regulatory adjustments related to improving the investment ecosystem as well as the convenience of industrial sector business actors, among others, related to affirmation policies for IKMs through the facilitation of raw materials and auxiliary materials," she said.
This has also been covered by PP Number 28 of 2021, which regulates the supply centers for raw materials and/or auxiliary materials.
"One of the crucial regulations in the PP, among others, is the regulation regarding the guarantee of the availability of raw materials and/or auxiliary materials, which is regulated through the commodity balance mechanism," she disclosed.
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According to PP Number 28 of 2021, the import of raw materials and/or auxiliary materials for IKMs who cannot conduct their own imports can be carried out by centers for raw materials and/or auxiliary materials that have a Business Identification Number (NIB) to prove their validity as well as evidence in the form of an order contract from the IKMs.
According to Yanita, her office is responsible for developing and empowering IKMs to help them compete at the global level.
This is being done through the formulation of policies that support the creation of a market for IKM products, innovation in product development, image and trademark enhancement for IKM products, as well as provision of guarantees on the availability of raw materials and/or auxiliary materials, she informed.
"Later on, the Center for Raw Materials and/or Auxiliary Materials will provide and distribute raw materials and/or auxiliary materials for IKMs," she added.
She said that imports are only intended for IKMs which cannot import raw materials and/or auxiliary materials by themselves, while the Center for Raw Materials and/or Auxiliary Materials can obtain raw materials and/or auxiliary materials from the remaining imports which are destined for IKMs, in accordance with the provision.
The distribution of raw materials and/or auxiliary materials will be carried out based on a cooperation scheme between the central and regional governments, Yanita added.
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Translator: Sella Panduarsa G, Resinta S
Editor: Fardah Assegaf
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