Indonesian Political, Business & Finance News

Government Urges Civil Servants to Use Locally Made SME Products

| Source: CNBC Translated from Indonesian | Economy
Government Urges Civil Servants to Use Locally Made SME Products
Image: CNBC

The government is continuing its efforts to upgrade micro, small, and medium enterprises (SMEs), from creating the ‘SAPA UMKM’ platform to ensuring civil servants (ASN) use local products. Yogia Prihartiny, Assistant Deputy for Supply Chain Partnerships and Small Business Marketing at the Ministry of Micro, Small, and Medium Enterprises, explained that SAPA UMKM is an information service platform for SMEs, covering data collection, access to strategic programmes, and improving managerial competence. “Then there are product certification and standardisation services, access to financing and investment. There is also strengthening of partnerships and supply chains, as well as expanding market access both domestically and globally,” Yogia said at the ‘Kota Masa Depan’ (City of the Future) event at Banjarmasin City Hall on Thursday (18/6/2026). Additionally, efforts to prioritise domestic products are being made by having ASN use local goods. She cited the example of wearing shoes made by a local entrepreneur. “So indeed, in our place, we ASN are encouraged to use local products. This step is certainly aimed at making SME products more visible, easily accessible to consumers, and more competitive compared to imported products,” she stated. The Kota Masa Depan programme is also the result of a synergy between Grab Indonesia and the ministry to help SME entrepreneurs quickly adopt digital technology. Through this programme, she hopes to create a space for SMEs to learn and accelerate transformation, enabling them to compete in a highly dynamic market. “We hope this future programme in Banjarmasin can become a space for learning, empowerment, and accelerating transformation for local SMEs so they become more adaptive to technological developments and able to compete in an increasingly dynamic market,” she said. On the same occasion, Banjarmasin Deputy Mayor Ananda said SMEs are required to adapt to public consumption patterns, including utilising technology, which he described as no longer a choice but a necessity. The city government is also continuously conducting various training programmes to strengthen the SME ecosystem. However, there remains a challenge in ensuring that products made by local entrepreneurs can reach a wider market by leveraging technology. “Therefore, I view digitalisation not as a replacement for traditional trading methods that have been running well, but as a means to expand business opportunities, increase efficiency, and open up greater market access. SMEs that can adapt to technological developments will have greater opportunities to grow and survive amidst increasingly dynamic competition,” Ananda explained.

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