Kendari Reactivates Sanua SME Centre to Empower Food Processing Micro-Enterprises

The Kendari City Government in Southeast Sulawesi has reactivated the food processing Small and Medium Industry (IKM) centre in the Sanua ward, West Kendari, to empower local food-based micro, small, and medium enterprises (MSMEs).

Kendari Mayor Siska Karina Imran stated on Thursday that the repurposing of the SME centre is intended to provide a more suitable location for food processing entrepreneurs. “This is so that entrepreneurs, SMEs, and MSMEs, such as grilled fish restaurants, no longer have to sell on the roadside,” said Sinds.

Siska explained that the SME facilities were originally constructed in 2021 using Special Allocation Funds (DAK). However, she noted that these government-funded facilities had fallen into disuse because the local government had not utilised them for MSMEs.

“There are 14 stalls here, and it is hoped that our food processing SMEs and MSMEs can use them for their welfare,” Siska revealed.

In addition to empowering local food processors, Siska mentioned that the policy aims to organise the city so that economic activities are centralised in one location. “This is so that sellers in the harbour and city market areas can move their businesses here, rather than being scattered along the roadsides,” she explained.

The city government is offering a free period for the first three months to MSME traders who relocate to the SME centre. In the interim, traders have been asked to undertake the cleaning of the site independently.

“This serves a dual purpose: it benefits the traders and ensures Kendari is more organised and less slum-like,” Siska clarified.

Siska revealed that Kendari City has approximately 600 food-processing SMEs with the capacity to employ around 1,500 people. This potential is considered significant for driving the regional economic circulation.

The existence of the SME centre is also expected to stimulate economic growth within the entrepreneurship sector. Notably, Kendari City ranked among the top three regions for national economic growth, achieving 7.78 per cent in the first quarter of 2026.

“This economic growth is expected to be continuously strengthened through business sector development, increased community income, and job creation,” she explained.

Meanwhile, the Head of the Department of Manpower and Industry, Farida Agustina, added that the SME centre could expand the marketing of various local food products in Kendari and build economic networks between MSMEs and visitors. “As a result, our local food products will be more widely known and liked because promotion can be conducted through this SME centre,” she added.