Local Products Need Support to Expand Market

KOMPAS/BAHANA PATRIA GUPTA

Shoes made of leather made by SMEs assisted by Sampoerna Entrepreneurship Training Center (SETC), Pasuruan Regency, East Java, on Thursday (2/6/2022).

JAKARTA, KOMPAS — A number of products produced by micro, small and medium enterprises (MSMEs) in many parts of the country need a bigger market in order to make them more competitive. Taking part in an exhibition and joining the e-Katalog, an online shopping application developed by the National Public Procurement Agency (LKPP), can be alternatives for MSMEs to expand their market.

Reports compiled by Kompas in the past week show that a number of MSMEs in the region were struggling to expand their market in the post COVID-19 pandemic era.

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The effort, for example, can be seen from the growing activities of MSMEs in Batu, East Java. The amount of orders for local products has almost returned to the level recorded before the pandemic. Locally made bags by the Raci label, for example, have orders until October this year.

Ima Fita Furi, 33, a Raci bag producer, said on Tuesday (Aug. 30) that she had just returned from an exhibition in Manado, North Sulawesi, and next month she will promote her bags in another exhibition. Through the exhibitions, Ima can distribute business cards to visitors. When someone is interested, they can order the product at a later date.

She produces more than 3,000 pieces per month. The selling price ranges from Rp 35,000 (US$2.5) to hundreds of thousands of rupiah per bag.

The plastic, woven tourist bags are also regularly sent to Hong Kong. Ima can send hundreds of bags of various models in each delivery. She produces more than 3,000 pieces per month. The selling price ranges from Rp 35,000 (US$2.5) to hundreds of thousands of rupiah per bag.

"From the beginning, the local government has supported us quite a lot. We are always invited to take part in exhibitions. Once a month, at least, we participate in an exhibition. That's why more people know about these plastic woven tourist bags," said Ima.

Door to recovery

The development of local MSME products can also be used as an entry point for post-pandemic economic revival and to prevent a recession. The mayor of Batu, Dewanti Rumpoko, hopes that all the stakeholders will be able to work together to recover from the pandemic.

JUMARTO YULIANUS

Various MSME products were exhibited at the Indonesian Entrepreneurs Association (Apindo) MSME Expo II activity in Banjarmasin, South Kalimantan, on Wednesday (29/1/2020).

"The joint efforts to recover from this pandemic must be continued so that we can maintain the market and restore consumer confidence after two years of standstill due to the pandemic," he said.

e-Katalog

Meanwhile in Jambi, apart from exhibitions and festivals, the city government is also helping the MSMEs expand their market through the e-Katalog, an online marketplace application developed by the LKPP.

"We continue to promote this policy so that more MSMEs in Jambi are registered in the LKPP’s online marketplace," said Jambi Mayor Syarif Fasha.

So far, 237 products have been registered in the local e-Katalog in Jambi. There are 13 product categories, namely office stationery, asphalt, materials, basic materials, ready mix concrete, livestock, security services, cleaning services, food and beverages, official clothing and traditional fabrics, school uniforms, vehicle service services, and souvenirs.

In the city of Banjarmasin, South Kalimantan, the local government has also registered local products in the e-catalog. Currently, around 35,000 business units have registered.

"MSME products that are widely used by working units within the city government will, of course, be given a priority to register," said the head of the Cooperative, Micro-Enterprise and Manpower Office of Banjar, Muhammad Isa Anshari.

In addition, the government is campaigning for the use of local MSME products.

MSME products that have been registered in the LKPP’s e-Katalog can be easily purchased by local governments or ministries and institutions. In addition, the government is campaigning for the use of local MSME products.

As part of the efforts to promote local products, Kompas daily will hold a City Leaders Community-Kompas Collaboration Forum (KCF) discussion in cooperation with the Association of Indonesian City Governments (Apeksi). The discussion will be held on Saturday (Sep. 3) in Bogor, West Java, with the theme "Optimizing the Utilization of Local Products for Economic Recovery and Anticipating Recession".

KOMPAS/AYU PRATIWI

Tourism and Creative Economy Minister, Sandiaga S Uno

Tourism and Creative Economy Minister, Sandiaga S Uno, and the chairman of LKPP, Abdullah Azwar Anas will also join the discussion forum as speakers. The discussion will be attended by 14 mayors of KCF-Apeksi members.

According to Kompas’ Chief Editor, Sutta Dharmasaputra, the third series of the KCF-Apeksi discussions is intended to bridge efforts to synchronize policies between the central and local governments in strengthening local products. (ITA/DIA/JUM/REK)

This article was translated by Hendarsyah Tarmizi.