Government urges developers to provide spaces for SMEs
Government urges developers to provide spaces for SMEs
To accelerate the development of small and medium enterprises
(SMEs), the government is urging the developers of industrial
estates to provide spaces for small businesses in their
properties.
State Minister of Cooperatives and Small and Medium
Enterprises Suryadharma Ali said SMEs made a vital contributions
to manufacturing and should be given spaces at industrial
estates.
"SMEs play a vital role in supporting large manufacturing
businesses. It would be great if they were allowed to operate at
the industrial estates close to companies they support,"
Suryadharma said. He proposed developers allocate some 20 percent
of their land to SMEs.
Indonesia has more than 42 million SMEs, contributing more
than 50 percent of the country's GDP.
Earlier, Minister of Industry Andung Nitimihardja also
suggested that developers of industrial estates give incentives
to SMEs by offering them spaces at affordable prices.
A report from property consultant company Procon Indah shows
that rental prices for warehouse buildings at industrial estates
in Greater Jakarta and Banten stood from between Rp 15,000 and Rp
25,000 per square meter a month and for standard factory
buildings at Rp 25,000 to Rp 50,000 per square meter a month.
General manager for business development of Jababeka
Industrial Estate Rudy Sentosa said that his company had signed
an agreement with the Ministry of Cooperatives and SMEs to
allocate spaces for SMEs in its area.
"Under the agreement, signed on April 6, Jababeka agrees to
allocate 15 hectares for 300 medium enterprises and 150 small
enterprises. It is expected that these SMEs will connect to large
enterprises operating in our estate," he said.
Jababeka has more than 3,000 hectares with over 1,100 large
manufacturing companies operating there.
Indonesian Industrial Estate Association executive director
Fahmi Shahab said the main issue was not how much land should be
allocated for SMEs but what the government would offer the
developers to support SMEs.
"If the government asks the developers to set special prices
for SMEs, will it subsidize the construction and maintenance
costs?" he told The Jakarta Post.
"I think the best way would be for the government to develop
specific estates for SMEs, either within existing industrial
estates or nearby. The government can't put the burden on the
developers." The association would organize a forum to discuss
the issue in September, he said. (006)