Festival Rasuna to promote SMEs

Festival Rasuna to promote SMEs

Dewi Santoso, The Jakarta Post, Jakarta

Some 180 small and medium enterprises (SMEs) and 120 private
businesses are expected to join the two-day Festival Rasuna 2004
at Pasar Festival, Jl. H. R. Rasuna Said, South Jakarta, on Feb.
14 and Feb. 15.

With the theme "Developing New and Competitive
Entrepreneurship", the festival is being held out of concern that
SMEs are often neglected.

Organizer Indo.com and main sponsor Bakrie & Brothers staged
the event in their effort to support SMEs in developing their
businesses.

"Their contribution to the recovery of Indonesia's economy is
enormous. I recently read in a newspaper that according to the
Ministry of Industry and Trade, last year's commodity exports by
SMEs increased significantly to US$3.085 billion from $2.664
billion in 2002. Yet, very often, their existence is ignored,"
Indo.com director Eka Ginting said on Thursday.

He later brainstormed with his staff on what should be done to
enhance and develop SMEs.

"We thought about the Kemang Street Festival, how it was a big
success. And we said, 'why not hold another festival?' This time,
it's not going to focus on crafts but more on general businesses.

"Then Bakrie & Brothers came along. They supported the idea
and we agreed to hold it at Pasar Festival as it has a more
accessible and strategic location," he said.

The Kemang Street Festival in South Jakarta was first held by
Indo.com in 2001. Since then it takes place every June 22, the
day Jakarta celebrates its anniversary.

Eka explained that there would be around 300 booths at the
venue. A seminar will be held on Feb. 16, at which SMEs will be
introduced to potential foreign buyers.

"We haven't set any financial targets as it is purely an
attempt to help SMEs boost their opportunities to penetrate new
markets. But if you ask me, from the SMEs' point of view, I think
they will expect to earn Rp 10 billion (US$1.19 million) to Rp 15
billion from local or foreign visitors," he said.

Bakrie & Brothers president director Bobby Gafur S. Umar said
his company was interested in sponsoring the festival as it was a
positive move toward helping SMEs to find their place in the
country's economy.

"Our company is committed to helping SMEs have bigger and
better opportunities in terms of business, as our company once
started out as an SME," said Bobby.

One of Bakrie & Brothers affiliates, Bina Mitra Bakrie
Foundation (YMBM), is also participating in the event.

"Our foundation helps SMEs develop their skills in doing
business, how to write a proposal, how to deal with export
systems, how to ask for a loan from a bank, things like that.
It's as though we're giving them the bait instead of the fish,"
said YMBM head Hisyam Sulaiman.

He added that usually YBMB would hold a recruitment drive for
SMEs six times a year, each involving around 30 SMEs, at a
training cost of around Rp 1 million per SME.

"Then, after they complete the training and become qualified,
we'd look and see if their business matched ours. If it did,
they'd become our business partners. If it didn't, then we'd
bring in foreign partners to buy their products. Thus, it would
be a win-win situation," he explained.

To date, Hisyam told The Jakarta Post, YBMB had approximately
10,000 SMEs throughout the country working in partnership with
Bakrie & Brothers.