Promoting small-scale businesses
Promoting small-scale businesses
As reported by Kompas (June 29), the Indonesian Chamber of
Commerce and Industry (KADIN) has inaugurated PT UKM, which will
assist small- and medium-scale businesses (UKM) in expanding
their markets by raising product quantity and quality, as well as
by maintaining production continuity.
Though assistance may be offered to UKM by many parties, it
lies with the government, as an agent of development, to promote
UKM, as the Malaysian government has done in the initial phases.
It has become public knowledge that state banks are reluctant
to provide loans for UKM due to the lack of collateral, but there
have been some improvements lately. Besides, other state
insurance institutions can also help, such as Askrindo and ASEI.
Government agencies abroad, like embassies and their trade
attaches, Indonesian Trade Promotion Center, the National Agency
for Export Development and UKM cooperatives, can help find
marketing breakthroughs. So why should KADIN call for the
assistance of entrepreneurs?
Fears exist of the recurrence of the New Order system of
"foster parenting", in which the businesses being fostered were
left in a worse condition, while the parent companies thrived.
Are our entrepreneurs strong enough today to perform the task?
How many companies already have an established position abroad
to do the promotion job? We still face a variety of domestic
corporate issues as yet unresolved, so overseas assignments
beyond private capacity should be avoided.
Meanwhile, the Association of Exporters and Producers of
Indonesian Handicrafts (ASEPHI) annually organizes INACRAFT
exhibitions to boost this trade; the number of UKM participants
rose to 650 members in April 2004 from only 150 in 1999, with a
lot of local and foreign orders secured.
As a member of KADIN, ASEPHI appreciates the role of KADIN,
while striving for the proper functioning of this chamber
according to the mission intended by national entrepreneurs.
RUDY LENGKONG
ASEPHI Central Board Chairman
Jakarta