BANDUNG–The products of 100.000 Micro, Small and Medium Enterprises (UMKM) marketed online on National Online UMKM Day 2017. The Governor of West Java, Ahmad Heryawan (Aher), launched the program at New Ciroyom Market, West Ciroyom street, Andir, Bandung City, Friday (31/3/17).
The launching were done simultaneously in 30 regencies/cities in Indonesia in period March 31st - April 2nd 2017. In west Java, the launching were done at two places, Bandung city and Garut regency. The National Online UMKM Day which is commemorated every March 31st also happened as a momentum to market the products of UMKM extensively to international.
According to Aher, Online UMKM can be marketing opportunities for UMKM products which have been constrained by expensive marketing and advertising issues. This effort is a form of facility from the government to develop UMKM. Therefore, Aher encouraged to improve the production and quality of UMKM products so they can compete with other products.
"Now we have online UMKM so there are no barriers anymore. They are facilitated by the government, large-scale facilities. No matter how many our products are, they still can be marketed, the products are grouped through the facilities of Communication and Informatics Department (Diskominfo), so there are no more marketing barriers for UMKM products," said Aher.
"Now the one that has to be fixed and encouraged is that we have to support our UMKM to produce more products. The second is we support our UMKM to improve the quality and and better packaging," he added.
UMKM is the back bone of the Indonesian economy. It was proven on the 2008 global economic crisis, UMKM survived and became the determinant of national economic instability back then. For that reason, West Java Provincial Government continued to foster and empower UMKM through many programmes, for example the launching of 100.000 new entrepreneurs and the launching of the Love People Credit programme (KCR) in 2011.
"I also assigned Mr. Dudi (the Head of the Department of Cooperatives and Micro, Small and Medium Enterprises of West Java), and also the Head of UMKM Departments in regencies/cities in West Java to keep fostering and empowering, so that the executants of UMKM can create good products, well-packaged, and can be marketed and compete with other products with less costs," said Aher in his intoduction speech.
According to the data from Central Bureau of Statistics (BPS), the total number of UMKM last year in Indonesia was 56,5 million. From the total number of workers in Indonesia which is 110 million peoples, 107 million peoples are in the structural of UMKM. The development and empowerment of UMKM is a strategic step in facing Asean Economic Community (MEA), moreover this sector has an important role in extending job vacancies and support Indonesian economy.
The Central Government through the Ministry of Cooperatives and Micro, Small and Medium Enterprises in Indonesia commited to make 8 million online UMKM until 2020. It was expected until the end 2008, there are at least 2 million online UMKM. This is in accordance to the Economic Policy Package XIV which was issued by the Central Government, which are e-Commerce Road Map which is expected to accelerate the national economic growth and simultaneously give a large space for local products to go global.
"E-Commerce Road Map can encourage creativity, innovation, and invention of new economic activities among the younger generation. By giving certainty and ease in order to utilise e-Commerce by giving direction and strategic guidance to accelerate the implementation of electronic-based national trading system period 2016-2019," said Deputy Minister for Creative Economy, Entrepreneurship, and Cooperative and SMEs Competitiveness, Coordinating Ministry for Economic Affairs of The Republic of Indonesia, Rudy Salahuddin, who also attended on the launching of Online UMKM in Ciroyom, Bandung.
The policy prioritised and protected national interest, specifically UMKM and start-up businessmen. In addition, to seek the expertise of human resources as the executants of electronic-based national trading system or also known as e-Commerce.
Meanwhile, the advantage of the movement to make 100.000 UMKM onlien for the society is to give opportunities that can be utilised by UMKM that joined the Movement of 100.000 UMKM Go Online. Among other, there are the biggest distribution of credit for business programme (KUR) in 1x24 hours; State Owned Enterprise (BUMN) Creative Home (RKB) incorporation; transformation from unbaked to banked (financial inclusion); and also the ooportunities to create tax id number (NPWP) simultaneously for all the online UMKM executants. Currently, the financial inclusion in Indonesia is still not maximal. Around 60% of the citizens do not have bank account, including the UMKM executants. In addition, the distribution of KUR is still low (4 millions UMKM) compared to the total number of UMKM in Indonesia.
The effort to build national entrepreneurships by making 100.000 UMKM go online simultaneously will be done by Nurbaya Initiative in cooperation with Pos Indonesia company by mobilising 25.000 employees who has been trained to be digital facilitators to help UMKM go online. The process to make UMKM go online had been done by the participants by visiting the registration tent of new online UMKM to further checked the completness of data and requirements before become online UMKM. The registration of UMKM go Online can be done by filling the online form at http://umkmonline.id or by text to 0813-1001-8008 in forms the name of UMKM, Location, Products/Services.
Other benefits from the movement to make 100.000 UMKM go Online is to get free domain (.id) and hosting, the participants can market their online UMKM products in leading market place, such as Tokopedia, Bukalapak, Blibli, Elevenia, dan Blanja. In addition, Nurbaya Initiative also provided e-kiosk in all post offices to optimise and facilitate an easy tax system for all UMKM go online executants.
The movement of 100.000 UMKM Go Onlline is expected to accelerate the vision of Indonesia to become "The Digital Energy of Asia" by emphasising on the strength of National UMKM.