With access to their industrial production technology, MSMEs will be able to boost the quality of their products, become more competitive, and improve their potential to enter the global value chain, he explained.
"Sharing factories may also be initiated by the private sector. In order to use the service from the factory, of course, MSMEs must pay a competitive price," Masduki said at a webinar entitled “Strategies for Indonesian MSMEs to Increase Class and be Competitive at Global Level,” which was followed online from Jakarta on Thursday.
He further said that his ministry will later provide assistance in obtaining distribution permits and halal certification for the MSMEs’ products.
The government is continuing to encourage improvement in the quality of MSME products, which, on average, is still poor since the production technology they use is still limited and simple, the minister noted.
According to him, ‘sharing factories’ will be a solution for MSME owners to make products with better packaging, even on a small scale.
“Nowadays, there are many private companies that have joint factories, for example, for cosmetic products and beauty products; they receive their product from a third party or the producer. The production does not have to be on a large scale. Therefore, people can start their business in skincare and cosmetics MSMEs because of that method," he added.
The method would also work well for food products to ensure better packaging quality, which can help increase MSMEs' revenue.
"We hope that companies like Sinar Mas Group will be able to build joint factories to help our MSMEs in increasing their product quality," Masduki added.
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Translator: Ade Irma J, Resinta S
Editor: Rahmad Nasution
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