President Launches KITE to Boost IKM Competitiveness

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Oleh Putri, Selasa, 31 Januari 2017 | 15:20 WIB - Redaktur: Penni Patmawati Rusman - 1K


Jakarta, InfoPublik – President Joko Widodo launched  Export Purposed Import Facility for Small and Medium Industries (KITE IKM) at Tumang Copper Crafts Center, Boyolali Regency, Monday (1/30). The program is expected to be able to improve Indonesia’s production competitiveness in export market. 

Based on the official release, the contribution of Indonesia’s Small and Medium Industries (IKM) to its export in 2015, at 15.8 percent, is still relatively low compared with other countries’ in Southeast Asia. For instance, Thailand’s IKM sector export contribution was 29.5 percent and Philippines was at 20 percent. 

After being launched, KITE IKM is expected to able to give support to IKM businessmen in increasing their export and in invigorating their business sector.

Fiscal incentives and ease of procedures provided are also aimed at driving IKM climate, for increased export value, higher contribution to Gross Domestic Product (GDP), increased employment absobtion, and IKM tourist villages created.

Cooperatives and Small and Medium Enterprises Minister Anak Agung Gede Ngurah Puspayoga stated that 
metal industrial centers at Tumang, hamlet of Boyolali Regency, Central Java becomes one of many locations that are suitable to be granted the facility. 

“The productive SMEs would be facilitated by giving incentives on imported raw materials. It is important for SMEs businessmen at Cepogo Village who have been supplying the export market for conducting cooperation,” he said. 
(Translator: Erik Limantara)