To make progress, IKM (Small and Medium Industries) of Indonesia Must Have Innovations

The importance of innovation for Small and Medium Industries (SMI) of Indonesia became the main topic of the talk show "SMI of Indonesian Food" in the 7th Agrinex Expo 2013, Friday 5/4, JCC, Jakarta. The number of Small and Medium Enterprises (SMEs) in Indonesia is quite high – recorded to be 55.2 million players, while there are only 3.8 million SMI actors. However, it is unfortunate that the progress of innovation in the SMI is still slow. This was the view of Euis Saedah, Director General of SMI, the Ministry of Industry, delivered in the talk show, which also presented the Chairman of Food Security Committee in the Indonesian Trade Chamber, F. Welirang, Head of Food Security Board of South Sumatra, Singgih Hima, moderated by Chief Organizer of Agrinex 2013, Ir. Rifda Ammarina.

 

In contrast, according to her, the government has provided stimulus to help SMIs. For example, the government gives 40% discount in the purchase of vacuum frying machine for SMI of jackfruit chips. "Players of SMI in Indonesia wishing to progress must be modern and professional. Thus, this means there should be efficiency, effectiveness, optimization, knowledge in the field and use of healthy and safe raw materials," said Euis.

 

A similar view was expressed by Welirang. This catering businessman said, there are 3 things to consider for small and medium entrepreneurs of Indonesia if they do not want to get hit by overseas businesses in food culture, creativity, and innovation. "Small industry in Indonesia must innovate to meet the demands of consumers: food should be easy to eat,  fast service, and certainly healthy and safe," said Welirang.

 

According to him, the diversity of traditional food in Indonesia should be a challenge of how we can crearively make them so popular with consumers. "The serving techniques and pricing strategies are important factors in targeting potential customers. Do not hesitate to set up a high price if the consumer is the upper middle segment," he said. (Mtd)