By: Mohammad Irfandi)*
The Institution which called as Lembaga Layanan Pemasaran Koperasi dan Usaha Kecil Menengah (LLP-KUKM) in Indonesia, said that Indonesia people are not really yet showing the positive opinion to advance the selling of Indonesia’s goods reflect to Indonesia’s goods quality. As a matter of fact, Indonesia people are more select the foreign product than national product. Then, as an Indonesia people, how do you feel about this situation?
It was said by Director of LLP-KUKM Ahmad Zabadi that the main reason is not development of the Indonesian society is against Indonesian SMEs to have a good product quality, but it is not accompanied by the use of products manufactured local employers though until TODAY, market Indonesian domestic, generally has been producing fashion products, furniture, footwear. But the problem, some people still have the mentality if the quality of SME products we’re no better than foreign products.
Ahmad asserted, if their alignments Indonesian people by buying the products of SMEs, it will automatically improving the quality of SME products. Because there is the velocity of money which can then be used to improve product quality. Ahmad provides an analogy that if foreign shoes cost 7 million can hold up to 6 years and the price of shoes in the country of 300 thousand, it is natural for only one year old.
Besides the issue of partisanship and respect for local products is still lacking, there are also other factors so inhibiting the development of SMEs. Namely, the high cost of logistics and shipping (shipping) goods abroad. For SMEs who are just starting to explore the global market, the logistical problems of a barrier to penetrate export markets.
Therefore, to reduce the burden on SMEs in the process of shipping, LLP-KUKM facilitate the majority of SMEs, which just reached a certain country markets through subsidy mechanism to provide relief support costs.
Meanwhile, the Governor of Bank Indonesia Agus Martowardojo said, the expected 90 percent of people have access to financial services on a formal financial institution in 2023.
When reviewing the development of SMEs by the people of Indonesia and linked to the government’s desire to bring access to financial services on a formal financial institution, it would be easier for people to do the development of some sectors that can produce a national scale and creating jobs.
But the thing to note is that, when people produce a product, the quality of products produced course should be a top priority that should be put forward. It is necessary to further erode the notion of domestic consumers still consider foreign products is still better.
)* Observer Political Economy of Indonesia