Tulungagung SMEs Urged to Form Consortiums to Secure Investments, Not Just Be Spectators
SMEs in Tulungagung, East Java, are being encouraged to form business consortiums to capture the growing investment opportunities. This consortium is projected to enable them to pursue investments now attracting investors, in line with the region’s economic growth.
SME Consortiums to Strengthen Capital
Deputy Chairman of the IT Division of the Tulungagung Branch Management Board of the Indonesian Hotel and Restaurant Association (BPC PHRI), Hari Pradana, stated that SMEs have experience in running businesses but are still weak in large-scale business collaborations.
“So far, SME actors have experience in running businesses, but when it comes to business collaborations, they are still lacking,” said Hari, while serving as a speaker at the Sahabat UMKM Tulungagung halal bihalal event on Saturday (28/3/2026).
He assessed that the “economic development pie” in Tulungagung can only be reached through substantial capital strength, so SMEs need to unite.
Small Capital Can Become Billions of Rupiah
Hari gave an example that one SME actor might only have capital of Rp5 million. However, if collected from 1,000 actors, the total could reach Rp5 billion.
Individual small capital can be pooled into large amounts
Consortiums increase investment competitiveness
Broader and more strategic business opportunities
“With Rp5 billion in funds, the investment capacity will increase significantly. Of course, there will be issues of trust and individual egos,” added Hari.
Challenges: Trust and Ego
According to Hari, the main challenge in forming a consortium is building trust and unifying visions among business actors.
The solution requires intensive discussions and joint forums such as Focus Group Discussions (FGDs).
“Indeed, various FGDs are needed to make it more powerful,” he said.
Major Opportunities from the Kediri-Tulungagung Toll Road
Hari also highlighted the major opportunities emerging from the construction of the Kediri-Tulungagung toll road. Several investors are reportedly ready to build hotels around the toll exits, such as in Karangrejo and the city area.
SMEs can seize these opportunities, either as direct investors or business partners.
Hotels and tourism businesses around toll exits
Restaurants with capital of around Rp2 billion
Food containers with capital of around Rp100 million
“With Rp2 billion in capital, we can establish a restaurant. However, if only Rp100 million, we can set up food containers at strategic points,” he explained.
Business Development Strategies
Along with business developments, SME consortiums can expand their business scale with various strategies.