The Ministry Of Industry Proposes Incentives For Industries That Connect And Collaborate With Small And Medium Enterprises (SMEs)

The Ministry of Industry is committed to collaborating with various stakeholders to develop small and medium enterprises (SMEs). One strategic action taken is organizing link and match business meetings between automotive component SMEs and large industries.

"This year, the automotive industry is facing significant challenges. We must take this situation seriously, as every challenge often brings opportunities," said Deputy Minister of Industry Faisol Riza during the "Business Meeting of Automotive Component SMEs with Large Industries" in Jakarta on Tuesday (December 10).

The Deputy Minister also emphasized the need for incentives for large industry players involved in the link and match program with the SME sector. "This effort is crucial because it allows all business lines to integrate and build a domestic supply chain," he stated.

The Minister of Industry hopes that similar link and match programs can be implemented in other industrial sectors. This initiative is expected to boost economic growth by accelerating partnerships and supply chains while supporting SMEs to enhance their competitiveness.

"Through this partnership commitment, we also support the domestic component level (TKDN) policy and import substitution aimed at protecting local industries to become market leaders in the country," he explained.

The link and match program between automotive component SMEs and large industries is a follow-up to the MoU signed by the Ministry of Industry and Kadin Indonesia in 2022, with ongoing collaborations planned until 2024. From 2022 to 2024, a total of 122 SMEs have partnered with 55 Tier-1 APM.

This encourages small and medium enterprises (SMEs) to have a sustainable market, pushing them to improve and potentially create a multiplier effect on the growth of the domestic automotive industry, said Faisol.

The Deputy Minister of Industry expressed high appreciation to partners of the Ministry of Industry, including Kadin Indonesia, PT Astra International Tbk, PT Astra Honda Motor, PT Astra Otoparts Tbk, Yayasan Dharma Bhakti Astra (YDBA), and the local government of Tegal Regency. "This shows a remarkable spirit of collaboration and synergy to enhance the role of SMEs in the national automotive supply chain," he added.

He also expressed gratitude to all parties involved in signing 60 MoUs between 57 automotive component SMEs and 28 large industries. "I hope the outcomes of these MoUs can be realized effectively and monitored for sustainability. May this signal a positive revival of the national automotive industry and foster good synergy between both parties," said Faisol.

Reni Yanita, Director General of Small, Medium, and Miscellaneous Industries (IKMA), noted that the first business meeting or link and match event took place in 2017 and has become an annual agenda for the IKMA Directorate. "On November 19, 2024, we signed 54 MoUs between YDBA, Tier 1 APM, and SMEs, followed by today’s symbolic signing of six MoUs from a total of 28 Tier-1 APM and 57 SMEs," Reni explained.

In addition to the MoU signing, the event included various activities such as workshops on strategies and programs for SME development, featuring speakers from Yayasan Dharma Bhakti Astra (YDBA), PT Astra Otoparts Tbk, PT Astra Honda Motor, PT Nandya Karya Perkasa (Tier-1), PT Amanah Jaya Perkasa (SME), non-bank financing institutions, and startup SMEs in the industry.

Tag: Kadin Indonesia Ministry Of Industry TKDN