The Minister of Cooperatives and SMEs, Teten Masduki, unveils the government's plan to establish mini and medium-sized factories to process Indonesia's key commodities, aiming to bolster SMEs and enhance the value chain of domestic products. These factories are envisioned to propel SMEs into the global market while fostering higher-quality employment opportunities. Among the commodities earmarked for processing facilities is seaweed, despite Indonesia being a leading global exporter, primarily dealing in raw materials. Establishing processing plants for seaweed extraction could open avenues for new economic endeavors. Furthermore, the government intends to construct mini factories for processing other commodities like herbs and patchouli. Indonesia's significant contribution to the global perfume industry, with a staggering 95% share, underscores the importance of patchouli, particularly sourced from Aceh, Indonesia. However, Indonesia faces challenges in patchouli oil processing, hindering its maximum utilization.
To address this, the plan entails establishing around 11 small-scale patchouli oil refineries in Aceh, ensuring purity and enhancing its marketability in the beauty and health sectors. Additionally, Indonesia's rich herbal resources hold promise when processed into extracts, contributing to the global health and beauty industries. The initiative aligns with Minister Teten's assertion that Indonesia should optimize its vast domestic potential, ensuring self-sufficiency and reducing dependency on external markets. By establishing these processing facilities, Indonesia aims to transition from raw material exporter to value-added producer, retaining more benefits domestically. The move also underscores Indonesia's commitment to economic resilience and sustainability, positioning itself as a key player in the global supply chain. Collaboration between government agencies and stakeholders is crucial in realizing these objectives, ensuring effective implementation and coordination across sectors. Overall, the government's strategy to establish processing facilities reflects its proactive stance in enhancing domestic production capacity, fostering economic growth, and maximizing Indonesia's potential in global markets.
