Government to cover 30 pct of small industrys production cost

Jakarta (ANTARA News) - The Ministry of Industry will cover 30 percent of the production cost, especially related to machinery, of small and medium scale enterprises (SMEs), a senior official said.

"The government will facilitate (machinery costs) up to 30 percent for domestic made machines and 20 percent for imported ones," Director General for (SMEs), Gati Wibawaningsih, said.

She made the statement after attending a business meeting among automotive component SMEs, brand holder agents (APM) and large industries in Jakarta on Tuesday.

The facility, according to Wibawaningsih, is an effort of the government through the Ministry of Industry to strengthen the SME industry in order to produce components, spare parts, and accessories whose quality is in accordance with the APM standards and large industries.

"SMEs only have to think about the remaining 70 percent cost. (Financing) can be obtained, for example, from the KUR (Peoples Business Credit). The KUR interest scheme is relatively low," explained Wibawaningsih.

She further said, the Automotive Components SMEs in Indonesia had produced various car and motorcycle accessories with APM standards, and continued to develop component products which had so far been fulfilled by imports.

The import value of two- and four-wheeled motor vehicle parts in the January to June 2018 period reached US$2.06 billion, up 33 percent from the same period in 2017.

Thus, Wibawaningsih said, to reduce dependence on the import market, in addition to government assistance, partnerships need to be established between SMEs and APMs and large industries.

In that partnership, APM and large industries can provide assistance to SMEs related to the production of components with quality according to the set standards.

The "Link and match" business meeting activities among the automotive component SMEs, brand holder agents (APM) and large industries at the the Ministry of Industry, Jakarta, Tuesday connected at least 100 SMEs with 19 APMs and large companies.

Hundreds of SMEs came from several cities on Java, including Jakarta, Bogor, Depok, Tangerang, Bekasi, Karawang, Bandung, Pasuruan, Purbalingga, Yogyakarta, Tegal, Klaten, and Sidoarjo.

During the business meeting, the government through the Ministry of Industry also provided equipment machines to the Indonesian Tegal Manufacturing Cooperatives, and the Lingga Purbalingga KUB.

Source: ANTARA News

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