Shopping for Indonesian SMEs Products Spend IDR 2,000 Trillion Per Year

Jakarta, MINA – The Indonesian Minister of Cooperatives and SMEs Teten Masduki said, the potential for shopping for SMEs products from within the country could reach IDR 2,000 trillion per year. This potential comes from spending of SOEs spending, government, and the New Capital City (Ibu Kota Nusantara/IKN)

“My record is that SOEs can buy around IDR 500 trillion for SMEs products. IKN can be around IDR 400 trillion, the government is IDR 500 trillion and large businesses are IDR 400 trillion. So, this is potential and if it is effective it can be up to IDR 2,000 trillion. This is our job and MSMEs. ,” said Minister of Cooperative SMEs Teten at the INABUYER B2B2G EXPO 2023 at the Smesco Building, Jakarta on Wednesday as quoted from Republika.

The amount of domestic SMEs expenditure potential will be reported to President Joko Widodo to immediately potentialize SMEs product shopping so that the realization can be maximized. If all the institutions mentioned above are able to maximize the absorption of domestically made products, Teten believes that Indonesia will still be able to survive in the midst of the global economic slowdown.

“Domestic economy, especially government spending, SOE spending including people’s consumption, if we buy SMEs products, our economic (growth) can be five percent. In this way, we can face a sluggish global economy,” he said.

Furthermore, Teten said that it was important for SMEs to enter the industrial supply chain in order to make it easier for SMEs to access financing because they already had market certainty.

If the SMEs market is clear, he said, it will be easier for banks to provide financing to SMEs. However, unfortunately, until now only about seven percent of SMEs have entered the supply chain of large industries

“Some of our MSMEs are still marketing independently, with their own branding. In the future, we hope that MSMEs will become part of the industrial supply chain. So that MSMEs can also grow and develop along with the growth and development of the industry itself,” he said.

Another benefit that MSME actors can get if they enter the industrial supply chain is that they can improve product standards. He also requested that Buyers and Offtakers from MSME products also provide assistance together with KemenKopUKM.

“Likewise, now the government, Mr. President Jokowi, has implemented an import substitution policy for the procurement of government goods and services. Today it has been determined that 40 percent of government spending must buy MSME products and during yesterday’s pandemic when the world economy was sluggish, the policy proved effective. grew by 5 percent,” he said. (T/RE1/P2)

Mi’raj News Agency (MINA)