The Indonesian government has developed export villages to increase rural communities’ self-reliance and welfare, the Coordinating Ministry for Economic Affairs said.
“The Coordinating Ministry for Economic Affairs supports the implementation of this cooperation through coordination, synchronization, and control of policies and programs, so that these targets can be achieved,” the ministry’s Deputy for Coordination of the Digital Economy, Employment and Micro, Small and Medium Enterprises M. Rudy Salahuddin said in a statement received here on Sunday.
The ministry has facilitated the signing of a joint agreement on Community Economic Empowerment through Export Village Development between the Ministry of Villages, Development of Disadvantaged Regions and Transmigration (Kemendes PDTT) with PT Astra International Tbk. and the Indonesian Export Financing Agency (LPEI), some time ago.
The agreement is aimed to build a synergy of programs and activities, commitment and collaborative action, as well as become the basis for related parties in carrying out future cooperation.
“The government prioritizes the improvement of community welfare in rural areas by encouraging the implementation of the Community Economic Empowerment Program, through strengthening community entrepreneurship and MSMEs based on the development of superior products in rural areas,” Salahuddin said.
The strengthening of entrepreneurship and MSMEs based on the development of superior products in the village is expected to increase the productivity of the lower middle class community, create job opportunities for people with low education, and create added value for local potential.
These targets will ultimately increase the income of rural communities in a sustainable manner and reduce poverty.
Meanwhile, PT Astra International Tbk. said it has developed 930 Astra Sejahtera Villages (DSA). Each village produces several kinds of product clusters, including coffee, marine, tourism clusters, creative product and cultural clusters. Through the collaboration with the ministry, Astra hopes that the program they are working on can develop.
Meanwhile, village products under the management of the Ministry of Villages and PT Astra will be curated by the Indonesian Export Financing Agency (LPEI). Villages that are selected as Export Villages will be given assistance, training, and guidance, starting from the management aspect, increasing production capacity, product standardization certification, business matching, and financing for exporters.
The Collective Agreement will be followed up with the signing of a Collective Labor Agreement (PKB) between the parties, as well as the preparation of action plans in several selected locations.
Source: Antara News