The success of Indonesian Small, Medium and Miscellaneous Industries
The 4.0 industrial revolution is a necessity that must be faced by business actors in Indonesia, including the Small, Medium and Miscellaneous industries (IKMA) sector.14 Apr 2021
Currently, 4.0 industrial technology which is generally based on digital, is considered to be a tool in supporting the productivity of the industrial sector more efficiently so that it can increase competitiveness.
There are five sectors for the development of the manufacturing industry that will be piloted, namely the food and beverage industry, textiles and clothing, automotive, chemical, and electronics.
The application of 4.0 industry can create opportunities for new job opportunities. For instance, there are startup companies that are increasingly popping up in the country, some of which absorb quite a lot of labor. Gojek is one of the examples. So that we can say 4.0 industry also opens up new business opportunities.
There are five important aspects that need to be done in an effort to form the Small, Medium and Miscellaneous industries (IKMA) sector so that it can be more competitive. Those aspects namely the use of the digital era, creativity, quality products and human resources, promotion and marketing, and partnerships. On October 10, 2020, Minister Agus Gumiwang Kartasasmita officially launched the Startup4Industry program at the Startup4Industry national seminar entitled "Startup, Tech Provider 4 Industry in the New Era of Normality''.
The role of startups as millennial youth is very important in bringing Indonesia faster towards the 4.0 industrial revolution. It is hoped that these startup innovations will provide solutions for industry and society in adopting technology, so that it becomes more efficient in terms of cost, energy and time. Therefore, the “Startup4Industry” competition program initiated by the Directorate General of Small, Medium and Miscellaneous Industries (IKMA) is a bridge to innovate the work of the nation's children towards today's industrial needs.
In addition, the current COVID-19 pandemic, even though it weakens the economy, is also a momentum to reorganize the industry in Indonesia. This is mainly related to the 4.0 industry.
The Minister of Industry said that, according to the 2020 Global Startup Ecosystem (GSE) report, Indonesia is in second place in the top 100 emerging startup ecosystems. This achievement has made Indonesia attractive to digital technology investors.
The government is targeting that 1,650 members of Small, Medium and Miscellaneous Industries (IKMA) can increase the capability and development of industrial entrepreneurs, as well as the application of product certification and strengthening of machines and equipment for 5028 members of Small, Medium and Miscellaneous Industries (IKMA).
In increasing the development of the progress especially in the industrial sector, Indonesia has a cooperative relationship that continues to be strengthened. One of the collaborations between the two countries was realized through the implementation of the Hannover Messe as a world-renowned industrial technology exhibition event.
Minister of Industry, Agus Gumiwang Kartasasmita explained that Indonesia will become the official partner country for the Hannover Messe event for three consecutive years, namely 2021, 2022 and 2023. "We have received letters from Deutsche Messe in December 2020 and January of this year. This is about the opportunity for Indonesia to become the country's official partner in the Hannover Messe 2021 and 2023, as well as special features in 2022, "he said.
One of the Small, Medium and Miscellaneous Industries (IKMA) sectors that has used 4.0 technology to increase productivity efficiency is palm sugar. The Nira Satria Cooperative is an example of the Small, Medium and Miscellaneous Industries (IKMA) sector that applies 4.0 industrial technology. That is a palm sugar producing cooperative located in Banyumas Regency, Central Java. The Nira Satria Cooperative has made Banyumas proud as a producer of good quality organic crystal sugar that has been marketed to international markets such as Germany, Europe, USA and China. Indonesia is the main exporter of palm sugar in the world, followed by the Philippines and Cambodia.
In addition, to assist the Small, Medium and Miscellaneous Industries (IKMA) players in seizing opportunities as well as facing the challenges of the arrival of e-commerce, the Ministry of Industry through the Directorate General of Small, Medium and Miscellaneous launched a program called e-Smart IKMA. This program collaborates with e-commerce players in Indonesia such as Tokopedia, Bukalapak, Shopee, Blibli, Gojek Indonesia and others. They consist of several industrial sectors such as the food and beverage industry, metal, furniture, herbs, cosmetics, fashion, and the creative industry.
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