Industrial zone invites SMEs to fill vacant space

Abdul Khalik, The Jakarta Post, Jakarta

To fill vacant spaces in the Jababeka industrial zone in Cikarang, Bekasi, small and medium enterprises (SMEs) are being invited to open factories and marketing centers in the area.

Jababeka president director Setyono Djuandi Darmono said the operator of the industrial zone would help the SMEs master new technology, sell their products and obtain bank loans.

"Over 1,000 companies operate in Jababeka. Some of them are among the world's biggest companies. They have technology that can be used by these SMEs. Moreover, these big companies must need something from these smaller enterprises," he said.

Darmono said SMEs would be able to rent space in the industrial zone for as little as Rp 500,000 (US$54) a month.

"Jababeka will advertise their products. We also will hold an exhibition to display their products so that people from all over the country can come and buy their products," he said.

Once the SMEs prove they are well managed and have the ability to grow, Darmono said, Jababeka will act as a guarantor to help them obtain bank loans.

He said several banks, including BRI, BII and NISP, had already expressed interest in providing loans for the SMEs.

Darmono said there were about 300 SMEs in Cikarang and Greater Jakarta that Jababeka was preparing to assist.

According to him, there are about 25 million SMEs across the country in need of help to expand their businesses.

"If one small enterprise can employ 10 people, then all of them together would create 250 million jobs. By helping these SMEs, we help the country create employment. We do not have to send, for instance, low-skilled workers abroad as they could earn money here," Darmono said.

Although SMEs proved resilient during the 1997 economy crisis, many small and medium businesses complain they still do not have access to bank loans.

Many banks prefer to channel loans to larger companies despite the higher default rates.

"We hope that this step by Jababeka will be followed by other industrial estates, so they can also utilize their idle land to help the government create jobs instead of simply waiting for foreign investors," Darmono said.