"It is time for MSMEs to embrace downstreaming while the government provides them with the required technologies," he told reporters after the opening of the Cerita Nusantara 2024 event in Jakarta on Friday (September 27).
Masduki underscored that Indonesian MSMEs should no longer be regarded as mere producers of chips or crackers, as they also have enormous potential to become suppliers of high-quality raw materials to domestic and international major corporations.
The minister proposed a paradigm shift for MSMEs, arguing that these businesses deserve recognition as catalysts of national economic growth and integral players in the industrialization process, rather than being viewed solely as income sources for households.
"Hence, we must view MSMEs as platforms that supply quality job opportunities. To that end, it is important to implement tight investment policies. We can count on MSMEs for job vacancy creation in the event of the absence of reliable manufacturing industries (investors)," he affirmed.
He highlighted that the government has taken various measures to stimulate MSME growth, including establishing a joint production house equipped with modern technology in Garut, West Java, which has helped leather craft MSMEs enhance their quality.
He also noted that the government had erected a similar facility in Aceh Province to facilitate local MSMEs to fully capitalize on the region's patchouli plants by processing them into essential oil worthy of exports.
Masduki underlined that Indonesia is home to an array of plants that can be extracted to produce cosmetics and medicines.
He said while Java is the hot spot of manufacturing industries, other regions can pursue the development of natural resource-based industries to help actualize equitable national development.
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Translator: Shofi Ayudiana, Tegar Nurfitra
Editor: Tia Mutiasari
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