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Formation of MSME Clusters Makes it Easier for Business Actors to Get Capital

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JAKARTA – The government through the Ministry of Micro, Small, and Medium Enterprises (MSMEs) has taken a progressive step by forming MSME clusters. This effort aims to facilitate access to capital for business actors while strengthening the involvement of MSMEs in the supply chain of large industries.

Minister of SMEs, Maman Abdurrahman explained that the clustering of SMEs will be realized through the formation of SME holdings that group business actors based on productive sectors. This step was taken in response to the slow development of SMEs in Indonesia compared to other Asian countries such as China, India, and South Korea.

“We want MSMEs to be part of the supply chain of large companies. For example, in the manufacturing sector for electric motor spare parts, MSMEs will be involved as part of a special holding,” Maman said.

He added that this clustering does not replace the role of cooperatives, which have been the main aggregators of MSMEs. On the contrary, cooperatives remain an important pillar in the development of small and medium enterprises.

“With this new approach, the government can provide more focused and targeted program interventions and make it easier for business actors to gain access to capital,” added Maman.

Minister Maman also targeted the formation of large and strong MSME clusters in the next five years. With a group-based approach, it is hoped that MSMEs can be more effectively connected to large industries.

“With this cluster, we want to create a small group consisting of 10 thousand to 20 thousand MSMEs. That is the direction of our policy for the next five years,” he said.

Meanwhile, Deputy Minister of SMEs, Helvi Yuni Moraza, emphasized that the formation of SME clusters will make it easier for business actors to gain access to capital. With the existence of organized SME clusters, small business actors have a greater opportunity to increase their business scale and compete in national and international markets.

“In this scheme, large companies will act as a liaison between MSMEs and banking institutions. Large companies will help MSMEs establish cooperation with banks so that access to financing becomes faster and more efficient,” Helvi explained.

The initiative also received support from the local government. The Head of the West Java Cooperatives and Small Business Agency, Taufik Rahmat Garsadi, stated that the program will accelerate the transformation of MSMEs from micro to small and medium scale, and strengthen their competitiveness amidst global competition.

“The formation of this cluster will create a more solid business ecosystem, so that MSMEs can move up a class. His party also continues to provide education and licensing services to MSME actors,” said Taufik. {}

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