Wed, 27 Oct 2010

TEMPO Interactive, Yogyakarta:Around 51.95 percent pf 22.091 small, micro, and medium-scale businesses (SMEs) in many sectors in Yogyakarta have difficulties expanding their business.

The main problem is the lack of marketing network.

“The marketing is still limited to a local scope, yet, their products have the potential to be marketed outside the region,” said Fikron W.A., an analyst from the Institute of Public Policy & Economic Studies, in workshop for SME Stake Holders, organized by the Yogyakarta Industry, Trade, Cooperatives, and Agriculture Office at Hotel Brongto yesterday.

The small to medium-scale sector’s largest potential is the food processing industry and general handicraft as the support for the tourism sector, followed by the clothing and leather industry.

So far, batik and silver have been the industries that managed to be marketed outside the region, even overseas.

“Yet, there are many creative products that have large potentials, like leather, embroidery, and natural fiber,” Fikron added.

Other problems impeding SME businessmen in Yogyakarta, Fikron explained, include capital, lack of skills or human resources, and scarcity in raw materials.

Many SME businessmen find it difficult to access capital with low interest rate.

The procedure at financial institutions seems to be burdening, making them relying on very minimal personal funds.

Marwoto Hadi, the Yogyakarta Regional House of Representatives’ (DPRD) Commission B head, encourages SME businessmen to continue the struggle in the hard business competition.

According to Marwoto, in relation with the effort to empower and guide SME, the Yogyakarta DPRD plans to draft a regional regulation on UMKM, through the right of initiative, in cooperation with the team from the Gadjah Mada University in Yogyakarta.

“We are currently identifying SME problems,” he said.

Heru Priyawarjaka, the Yogyakarta Industry, Trade, Cooperatives, and Agriculture Office chief, said to prepare all this, it requires recent data base which is continuously renewed.

He admitted that the government’s data base is still weak. “If the database is not valued, it will hamper the government in the guiding and evaluating process,” he said.