JP/13/SMEs
JP/13/SMEs
Cigarette maker aims to inspire SMEs
Leony Aurora
The Jakarta Post/Jakarta
It was 1913 when Lim Seeng Tee got on his bike and rode
through the streets of Surabaya selling the cigarettes that he
and his wife had hand-rolled at their humble bamboo-walled house.
Not many people know that that humble beginning was the start
for giant cigarette maker PT HM Sampoerna, which in the first
nine months of this year sold 30.95 billion cigarettes worth Rp
12.52 trillion (US$1.38 billion) -- roughly equal to the Jakarta
administration's entire budget for 2004.
"What small and medium enterprises (SMEs) need are good
examples and inspiration to show them that they can grow into
great businesses," Rusni Kartina, senior brand manager of Dji Sam
Soe, the brand Seeng Tee crafted more than nine decades ago, told
The Jakarta Post recently.
"They also need help in finding a market for their products,"
she added.
These things were what the government, as well as the private
sector, should do -- more than merely giving capital -- said
Rusni.
The East Java-based cigarette company is holding a national
competition called the Dji Sam Soe (DSS) award to find exemplary
SMEs. The model enterprises selected will be those which have
good corporate governance in their management and a high
sustainability prospects.
To be eligible, the SMEs are required to have assets of
between Rp 250 million and Rp 1 billion -- not including land and
buildings -- and a turnover of between Rp 1 billion and 5 billion
per annum. They should employ more than 10 workers and have been
in business for more than three years.
Sampoerna will entrust the selection process to Tempo Media
and SMEs development organizations Dunamis Organization Services,
Swisscontact and state-owned investment firm PT Permodalan
Nasional Madani.
As for finding markets, Rusni gave examples of what Sampoerna
does for several tempeh and tofu producers near its factory in
Malang, East Java, as an example.
"We distribute their products via Alfa minimarkets," she said.
The government also plans to honor excellent micro
entrepreneurs of 2004 by handing out an award on Nov. 18. In a
bid to boost the development of the micro-enterprise sector, it
has set 2005 as the international year of micro-credit.
Micro-enterprises and SMEs in Indonesia, which reached 40
million units and employ 80 million people in 2003, have proven
to be highly sustainable, even amid the 1997 monetary crisis.
A survey by the office of the state minister of cooperatives
and SMEs of 225,000 enterprises shows that just 4 percent had
gone bankrupt.
Sixty-four percent were able to maintain profitable turnovers,
while 31 percent kept their businesses despite declining sales.
SMEs played a big role in the success of large companies, said
Rusni. Sampoerna is supported by 25 enterprises with more than
1,000 employees that roll the company's trademark cigarette Dji
Sam Soe.
"Our cigarettes are also distributed widely through SMEs," she
explained further.
The first, second and third place winners of the DSS award
will get cash prizes of Rp 36 million, Rp 27 million and Rp 18
million, respectively.
Registration forms, available in several banks and website
www.djisamsoe.com, can be submitted until Dec. 9.
Over 190 selected nominees will receive site visits and be
interviewed by the jury. After further selections, nine top
nominees will go to Jakarta to give presentations in front of
prominent business figures -- Eva Riyanti Hutapea, Bob Sadino,
Enny Harjanto and Charles Saerang.
The winners will be announced in the third week of January
next year.
"We believe that the award will give the model SMEs wide
exposure, a sense of pride and inspiration," said Rusni.