The Indonesian Minister of Cooperatives and Small and Medium Enterprises (Kemenkop UKM), Teten Masduki, has unveiled a strategic program to support the competitiveness of the automotive industry. This program includes fostering partnerships and creating networks of collaboration between Small and Medium Enterprises (UKM) and large industries. Teten explained that Kemenkop UKM is enhancing the competitiveness of the automotive sector through product certification, accelerating financing through the distribution of Kredit Usaha Rakyat (KUR), establishing automotive UKM industry centers under one cooperative, simplifying business procedures through the Omnibus Law, implementing affirmative taxation policies, certifying UKM products for inclusion in e-catalogs, providing one-stop services, and coordinating across sectors through the national strategy for empowering cooperatives and SMEs. He emphasized that the automotive industry is a significant pillar of Indonesia's manufacturing sector, with an 18% increase in 2022 compared to the previous year.
The strategic program's goal is to enable UKM participants to compete and penetrate international markets, thereby contributing to the nation's progress. Teten stressed the need for collaboration and synergy among various stakeholders, including the private sector, academics, business associations, and support organizations. The government is actively encouraging foreign investment, especially in light of Domestic Component Levels (Tingkat Komponen Dalam Negeri or TKDN) requirements, which necessitate partnerships between foreign investors and local businesses, particularly SMEs. Teten expressed appreciation for the collaboration between the Indonesian Small and Medium Automotive Component Industry Association (PIKKO) and the Busan Economic Promotion Agency (BEPA) from South Korea, particularly related to the Research and Development Technology Center for Electric Vehicles. He hopes this collaboration will strengthen the automotive industry between South Korean companies and Indonesian SMEs, ultimately boosting the economies of both nations.
