Indonesian Political, Business & Finance News

Ministry of Industry strengthens SMEs' access to modern retail

| Source: ANTARA_ID Translated from Indonesian | Economy
Ministry of Industry strengthens SMEs' access to modern retail
Image: ANTARA_ID

Jakarta (ANTARA) — The Ministry of Industry (Kemenperin) is strengthening access for Indonesia’s small and medium industries (IKM) to the modern retail market, including through a strategic partnership with PT Daya Intiguna Yasa Tbk (MR.DIY).

In a statement released in Jakarta on Friday, Industry Minister Agus Gumiwang Kartasasmita said the collaboration forms part of the government’s strategy to bolster the national industrial ecosystem, particularly for IKM players to compete more effectively in modern markets.

The collaboration was formalised through a Memorandum of Understanding (MoU) between the Directorate General of Small, Medium, and Aneka Industries (Ditjen IKMA) of Kemenperin and MR.DIY in Jakarta on Monday (18 May).

“Through this collaboration, we want to create a stronger marketing ecosystem so that Indonesian IKM products are more competitive, have wider distribution access, and can reach larger markets,” the Minister said.

The Minister stressed that the domestic manufacturing sector continues to perform solidly amid global economic dynamics. In the first quarter of 2026, the processing industry grew by 5.04% and contributed 19.07% to the national Gross Domestic Product (GDP).

“This achievement shows that the manufacturing sector remains the main pillar of the national economy,” he added.

Moreover, business sentiment in the industrial sector remains optimistic, as reflected by the Industrial Confidence Index (IKI) for April 2026 at an expansionary level of 51.75.

According to Agus, this condition indicates the national industrial sector retains resilience and adaptability in the face of global challenges, including geopolitical tensions and the global energy crisis that affect logistics costs and raw materials.

“This condition underscores the importance of strengthening the domestic market and increasing the use of domestically produced goods as a foundational basis to strengthen the competitiveness of the national industry, particularly the IKM sector,” he asserted.

The two-year cooperation includes data and information exchange, facilitation of promotions and market expansion, development of partnership networks, as well as technical guidance and marketing support for IKM products.

The commodities covered include household equipment, electronics, office stationery, sporting goods, vehicle accessories, crafts, tools, toys, jewellery, cosmetics, and computer and mobile phone equipment.

Reni Yanita, Director General of IKMA, said IKM plays a strategic role in strengthening the national industrial structure while serving as a driver of regional economies.

Based on BPS data for 2025, the number of IKM in Indonesia reached 4.43 million business units, or about 99.79% of the total national industry.

“In Q1 2026, IKM contributed 21.71% to national industrial output and absorbed more than 13 million workers. This means that strengthening IKM is equivalent to strengthening the country’s economic foundation,” she said.

She hopes that through this collaboration, more IKM-supported products can enter MR.DIY’s supply chain with competitive, innovative quality and in line with consumer needs.

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