SMEs in Indonesian Economy and Policies to Enhance Development and Empowerment of Indonesian SMEs

7/21/2019 SMEs in Indonesian Economy and Policies to Enhance Development and Empowerment of Indonesian SMEs

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SMEsin

Indonesian

Economy

and

SMEs

in

Indonesian

Economy

and

PoliciestoEnhanceDevelopmentandPoliciestoEnhanceDevelopmentand

Empowermentof

Indonesian

SMEsEmpowerment

of

Indonesian

SMEs

HafizRahmanHafizRahmanPreparedforandPresentedinPreparedforandPresentedin

The1stInternationalSEPNetWorkshoponThe1stInternationalSEPNetWorkshopon

International

Comparisons

on

Private

Sector

Development

StrategiInternational

Comparisons

on

Private

Sector

Development

StrategiesesHaikouCity,P.R.China,6HaikouCity,P.R.China,610November200410November2004


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`Community

Based

Economy

and

Community

Based

Economy

and

CooperativesareFoundationsandCooperativesareFoundationsand

Pillars

of

Indonesian

Economy`Pillars

of

Indonesian

Economy`(IndonesianStateGazette,Year1945)(IndonesianStateGazette,Year1945)


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BriefBrief

1.1. OverviewofIndonesianSMEsOverviewofIndonesianSMEs

2.2. PoliciesandStrategiesPoliciesandStrategies

3.3. ImplementationofStrategiesImplementationofStrategies

Other

ProgrammesOther

Programmes


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BriefBrief

1.1. RolesofSMEsincountry`seconomycanbeseeninRolesofSMEsincountry`seconomycanbeseenintheMacroeconomicsIndicators:theMacroeconomicsIndicators:

a.a. Givingcontribution

to

GDP

(ACt,

1999)Giving

contribution

to

GDP

(ACt,

1999)

b.b. GeneratorsofattractiveemploymentGeneratorsofattractiveemploymentopportunities(Urata,2002)opportunities(Urata,2002)

c.c. Minimize

unMinimize

un

employment

rate

(Acs

et.

al.,

employment

rate

(Acs

et.

al.,

1999)1999)

d.d. Minimizeinflationrate(Acset.al.,1999)Minimizeinflationrate(Acset.al.,1999)

e.e. Improving

employment

opportunity

(Acs

et.

Improving

employment

opportunity

(Acs

et.

al.,1999)al.,1999)

f.f. Agent/sourceofnewinnovation(Acset.al.,Agent/sourceofnewinnovation(Acset.al.,1999)1999)


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2.2. SMEsinIndonesia;SMEsinIndonesia;

a.a. Number:Number:99,98%99,98% oftotalnumberofoftotalnumberof

enterprisesenterprises

b.b. SupportSupport59,36%59,36%ofGDP(inlast5yearsofGDP(inlast5years

average)average)

c.c. ContributeContribute99,44%99,44%ofthetotalemployeesinofthetotalemployeesinIndonesia

(in

last

5years

average)Indonesia

(in

last

5years

average)


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3.3. FrameworksofDevelopmentandEmpowermentFrameworksofDevelopmentandEmpowerment

ofIndonesian

SMEsof

Indonesian

SMEs

BasicFoundationsBasicFoundations

DevelopmentandEmpowermentPoliciesDevelopmentandEmpowermentPolicies

DevelopmentandEmpowermentStrategiesDevelopmentandEmpowermentStrategies


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I. OverviewofIndonesianSMEsI. OverviewofIndonesianSMEs

A.A. BusinessSectorsandNumberofEnterprisesBusinessSectorsandNumberofEnterprises

BusinesssectorsofIndonesianSMEs:BusinesssectorsofIndonesianSMEs: Agriculture,

Animal

Husbandry,

Forestry

and

Agriculture,

Animal

Husbandry,

Forestry

and

AquacultureAquaculture

MiningMining

ProcessingindustriesProcessingindustries

Electricity,gasandwaterElectricity,gasandwater

ConstructionConstruction

Trading,hotel

and

restaurantTrading,

hotel

and

restaurant

TransportationandcommunicationTransportationandcommunication

FinanceandleasingFinanceandleasing

ServicesServices


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NumberofSMEs:NumberofSMEs:

SmallEnterprises:about99,80%ofallSmallEnterprises:about99,80%ofall


MediumEnterprises:about0,14%ofallMediumEnterprises:about0,14%ofall


About56%ofallSMEshavebusinessesinAbout56%ofallSMEshavebusinessesin

Agriculture,Animal

Husbandry,

Forestry

and

Agriculture,

Animal

Husbandry,

Forestry

and

AquaculturesectorsAquaculturesectors


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B.Contribution

of

SMEs

to

Economic

PerformanceB.

Contribution

of

SMEs

to

Economic

Performance

Contributiontoemploymentrate:morethanContributiontoemploymentrate:morethan

99%99%

ContributiontoGDP:54%ContributiontoGDP:54%59%59%

Contributionto

export

:14%

Contribution

to

export

:14%

15%15%


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C.C.Problems

of

Indonesian

SMEsProblems

of

Indonesian

SMEs

1.1. Financial/capitalFinancial/capital

a.a. Access

to

credit

and

capital

Access

to

credit

and

capital

accummulationislimitedaccummulationislimited

b.b.ProceduralconstraintsProceduralconstraints

c.c. InterestrateInterest

rate

d.d.TrustandinterestoffinancialTrustandinterestoffinancialinstitutionsinstitutions

2.2. AvailabilityofrawmaterialsAvailabilityofrawmaterials

a.a. PricesincreaseveryhighPricesincreaseveryhigh

b.b.Therefore,inventory

is

not

optimalTherefore,

inventory

is

not

optimal


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3.3. MarketingMarketing

a.a. Limitationto

develop

the

marketLimitation

to

develop

the

market

b.b.UnabletocompeteinqualityandserviceUnabletocompeteinqualityandservice

4.4. Difficulties

in

paying

workers

salaries

and

Difficulties

in

paying

workers

salaries

and

wageswages

a.a. RevenuethatcomesfromsellingisRevenuethatcomesfromsellingis

decreasedecreaseb.b.IncreasinginRegionalMinimumWagesIncreasinginRegionalMinimumWages(UMR)(UMR)

5.5. EnergyEnergy

a.a. TariffofelectricityincreasesveryhighTariffofelectricityincreasesveryhigh

b.b.Tariffof

fuel

and

gas

increases

very

highTariff

of

fuel

and

gas

increases

very

high


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6.6. Technical

and

managerial

capabilityTechnical

and

managerial

capabilitya.a. UnUnpracticaleducationorientedpracticaleducationoriented

b.b. TrainingopportunitiesforSMEsTrainingopportunitiesforSMEs

practitioners

are

still

limitedpractitioners

are

still

limited7.7. CompetitionCompetition

a.a. MarketstructureisnotfriendlyMarketstructureisnotfriendly

b.b. MuchproductproducedbylargerMuchproductproducedbylargerenterprisesenterprises

8.8. IntellectualProperty

RightsIntellectual

Property

Rights

9.9. LegalstatusofSMEsLegalstatusofSMEs


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C.

Priorities

and

targets

of

the

development

of

C.

Priorities

and

targets

of

the

development

of

IndonesianSMEsIndonesianSMEs

a.a. MotorofregionaleconomicsdevelopmentMotorofregionaleconomicsdevelopmentbased

SMEsbased

SMEs

b.b. SupportingindustriesbasedSMEsSupportingindustriesbasedSMEs

c.c. ExportorientedExportorientedimportsubstitutionbasedimportsubstitutionbasedSMEsSMEs

d.d. KnowledgebasedSMEsKnowledgebasedSMEs

e.e. NewinitiativesSMEsNewinitiativesSMEs


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II.

Policies

II.

Policies

1.1. BasicFrameworksandFoundationsBasicFrameworksandFoundations

a.a.Idealfoundation

:Five

Principles

of

Nation

Ideal

foundation

:Five

Principles

of

Nation

(PANCASILA).(PANCASILA).

b.b.Constitutionalfoundation

:Indonesian

State

Constitutional

foundation

:Indonesian

State

Gazette,Year1945.Gazette,Year1945.

c.c.Operationalfoundation

:National

Main

Operational

foundation

:

National

Main

Guidelines(GBHN)1999Guidelines(GBHN)199920042004


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2.2. DevelopmentandEmpowermentPoliciesDevelopmentandEmpowermentPolicies

a.a. IndonesianStateGazetteNo.9/1995aboutIndonesianStateGazetteNo.9/1995aboutSMEsSMEs

b.b. IndonesianState

Gazette

No.

25/1992

about

Indonesian

State

Gazette

No.

25/1992

about

CooperativesCooperatives

c.c. IndonesianStateGazetteNo.22/1999aboutIndonesianStateGazetteNo.22/1999about

RegionalGovernmentRegionalGovernment

d.d. GovernmentalDecrees,Rules&GovernmentalDecrees,Rules&

Regulations

e.g.

;Regulationse.g.;

ForbiddenBusinessFieldsforlargeForbiddenBusinessFieldsforlargeenterprisesenterprises

JointVentures

between

SMEsJoint

Ventures

between

SMEs


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3.3. 10DevelopmentandEmpowermentStrategies10DevelopmentandEmpowermentStrategies

a.a. UsingresearchoutputandtechnologyUsingresearchoutputandtechnology

b.b. Developing

new

product

design

and

adjust

Developing

new

product

design

and

adjust

itwithmarkettrendsitwithmarkettrends

c.c. ImprovingmanagementofthebusinessinImprovingmanagementofthebusinessin

generalgeneral

d.d. DevelopingexportmarketDevelopingexportmarket

e.e. Formulationof

standardized

Business

Plan

Formulation

of

standardized

Business

Plan

andFeasibilityStudyandFeasibilityStudy


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f.f. CreatingNetworksbetweenSMEsandCreatingNetworksbetweenSMEsand

strategicalliances

between

SMEs

and

larger

strategic

alliances

between

SMEs

and

larger


g.g. StrenghteningSMEscapitalStrenghteningSMEscapital

h.h. Developingandimprovingsuitable&Developingandimprovingsuitable&enableinfrastucturesatmesolevelforenableinfrastucturesatmesolevelfor

SMEsSMEsi.i. FormulatingrulesandregulationwhichFormulatingrulesandregulationwhichprotectSMEsfromallunfaircompetitionprotectSMEsfromallunfaircompetition

j.j. DevelopingNetworks

between

Developing

Networks

between

Government,PrivateInstitutionsandGovernment,PrivateInstitutionsandNGOsNGOs


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III.ImplementationofStrategiesIII.ImplementationofStrategies

1.1. BottomBottomUpandUpUpandUpGradeClusteringGradeClustering

2.2. SentraIndustri

Kecil

(Small

Industrial

Center)

Sentra

Industri

Kecil

(Small

Industrial

Center)

OneVillageOneProductOneVillageOneProduct

3.3. CreditInformationSystemsCreditInformationSystems

4.4. CreatingSMEsPortalCreatingSMEsPortal

5.5. Standardization

and

Certification

of

SMEs

Standardization

and

Certification

of

SMEs

productsproducts

6.6. EnhancingprivatesectorsparticipationsEnhancingprivatesectorsparticipations


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7.7. Developing&improvingsupportinginstitutions;Developing&improvingsupportinginstitutions;

a.a. EstablishmentofIndonesianSmallBusinessEstablishmentofIndonesianSmallBusinessCouncilCouncil

b.b. Financialinstitutions;Financialinstitutions;

Banks(BRI,IslamicBank/BankSyariah)Banks(BRI,IslamicBank/BankSyariah)

Venture

Capital

Companies

(State

Venture

Capital

Companies

(State

ProvincialOwned&PrivateOwned)ProvincialOwned&PrivateOwned)

c.c. Microfinanceinstitutions;Microfinanceinstitutions;

BPRBPRBankPerkreditanRakyatBankPerkreditanRakyat

d.d. CreditGuaranteeCompanyforSMEsCreditGuaranteeCompanyforSMEs


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e.e. SMEs

Development

Research

Centers

and

SMEs

Development

Research

Centers

and

Institutes(BALITBANGUKM);Institutes(BALITBANGUKM);

LPMLPMLembagaPengembanganLembagaPengembangan

Masyarakat

(Community

Development

Masyarakat

(Community

Development

Institutions)Institutions)

SMEDCSMEDCUGM(SMEsDevelopmentUGM(SMEsDevelopmentCenter,GadjahMadaUniversity)Center,GadjahMadaUniversity)

f.f. BusinessIncubationCenter;BusinessIncubationCenter;

PusatInkubatorBisnisITB(BusinessPusatInkubatorBisnisITB(Business

IncubationCenter

of

Bandung

Institute

Incubation

Center

of

Bandung

Institute

ofTechnology)ofTechnology)


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g.g. TechnologyandIndustrialParks;TechnologyandIndustrialParks;

BatamTechnologyandIndustrialParksBatamTechnologyandIndustrialParks

PuloGadung

Technology

and

Industrial

Pulo

Gadung

Technology

and

Industrial

ParksParks

JABABEKAIndustrialParksJABABEKAIndustrialParks

h.h. FreeTradeandProcessingZone;FreeTradeandProcessingZone;

BatamFreeTradeandProcessingZoneBatamFreeTradeandProcessingZone

KawasanBerikatNusantaraKawasanBerikatNusantara


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i.i. BusinessSupportInstitutionsBusinessSupportInstitutions

KKBKKBKlinikKonsultasiBisnis(BusinessKlinikKonsultasiBisnis(Business

ConsultingClinic)ConsultingClinic)

PERPERPusatEkonomiRakyatPusatEkonomiRakyat(CommunityEconomicCenter)(CommunityEconomicCenter)

j.j. SMEsChamberofCommerceandIndustrySMEsChamberofCommerceandIndustry


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Other

ProgrammesOther

Programmes1.1. AllocationprofitsofIndonesianStateOwnedAllocationprofitsofIndonesianStateOwnedEnterprisesastherevolvingfundforSMEsEnterprisesastherevolvingfundforSMEsdevelopmentdevelopment

2.2. ProgramMitraBinaan&BapakAngkatProgramMitraBinaan&BapakAngkat

(Partnershipsand

Foster

Parents

Programmes)

(Partnerships

and

Foster

Parents

Programmes)

betweenIndonesianStateOwnedEnterprisesbetweenIndonesianStateOwnedEnterprisesandSMEsandSMEs

3.3. VoucherProgramme,SPESIandKUBUSinVoucherProgramme,SPESIandKUBUSindevelopingmarketofBDSProviders(bydevelopingmarketofBDSProviders(by

SwissContact)SwissContact)


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4.4. VocationalTraining

for

SMEs

(by

National

Vocational

Training

for

SMEs

(by

National

TrainingCenterofSMEsandCooperatives,TrainingCenterofSMEsandCooperatives,IndonesianExportTrainingCenter/IETC,IndonesianExportTrainingCenter/IETC,

Academyof

Company

Managers

and

Chambers

Academy

of

Company

Managers

and

Chambers

ofCommerceandIndustry)ofCommerceandIndustry)

5.5. YearlyNationalExhibitionofSMEsproductsYearlyNationalExhibitionofSMEsproducts


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Terima Kasiherima Kasih

Thank youhank you

ankeanke

Documents

SMEs in Indonesian Economy and Policies to Enhance Development and Empowerment of Indonesian SMEs