Kadin plans trading house to help SMEs

Kadin plans trading house to help SMEs

Tony Hotland, Jakarta

The Indonesian Chamber of Commerce and Industry (Kadin) plans to
set up a trading house to help market products from small and
medium-sized enterprises (SMEs) both domestically and overseas.

"The point is that the company will buy (the products) and
help market them in the country or export them abroad," the
chamber's chairman, M.S. Hidayat, said on Friday.

He said the chamber would soon begin the process of
identifying products with the potential to be marketed, as well
as surveying potential markets.

"A brief look shows that handicrafts, woven clothing and
snacks are products that have the potential to be developed," he
said.

Hidayat said the chamber would work with four banks to help
finance the marketing efforts. The four banks are Bank Negara
Indonesia, Bank Rakyat Indonesia, Bank Mandiri and Bank Central
Asia.

Most SMEs here have trouble marketing their products,
especially internationally, because of a lack of promotion and
marketing networks.

About 98 percent of businesses in the country are SMEs.

"Most SMEs produce things first, then they have problems
marketing the products. We are going to turn this around by
surveying the market first and seeing what the demand is before
producing products," Hidayat said.

He also said the chamber would begin circulating on July 1 a
pledge to help the SMEs, as well as organizing an exhibition of
products made by SMEs from across the country.

"The declaration will be signed by representatives from Bank
Indonesia, industries, banks, non-governmental organizations and
the media," he said.