"We want MSME products to be integrated with the industrial supply chain, and no matter how small it is, we direct it to the industry," Masduki noted at a press conference of the Co-operative Day and National MSME Day 2023 here on Wednesday.
The minister highlighted that partnerships had been forged between MSMEs and large industries in several countries, such as China, South Korea, and Japan.
"Hence, the MSMEs are advanced along with the industry. Only seven percent of our MSMEs are connected to the supply chain," he remarked.
In conducting the pilot programs, no exact target had yet been set for the increase in the percentage of MSMEs connected to large industries, he pointed out.
"For instance, connecting them with the herbal medicine industry, like Bintang Toedjoe and Sidomuncul, because there are many MSMEs in the agricultural sector. There is a co-operative in Ciwidey (West Java) that connects farmers with modern supermarkets," he remarked.
Citing another example, Masduki noted that banana farmers in Lampung had been connected to industrial suppliers, thereby allowing them to export their products.
The government also encourages cooperation between MSMEs and state-owned enterprises and private companies and offers tax incentives for MSMEs that partner with the industry.
It also seeks to instill a mindset among those running small businesses to have industrial standards.
"If not, MSMEs can only dominate in the culinary sector," he stated.
Meanwhile, the 2023 Co-operative Day and National MSME Day, to be observed in August, is a form of the government's appreciation for MSMEs that have played a major role in the country's economy.
"This celebration is also a promotional event, wherein we will conduct business matching to show progress in the MSME sector. We will invite MSME associations, e-commerce, and financing institutions," he remarked.
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Translator: Aris W, Kenzu
Editor: Azis Kurmala
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