The Development of IKM Can Recover a Budget Deficit


Indonesian economy underwent a deficit in the end 2015 since the import was greater than the export. However, the deficit could be reduced through empowering small and medium industries (IKM). The IKM has an essential role in the national industry development.

In the opening of International Conference ‘Agribusiness Development for Human Welfare’ at hall of A.R. Fachruddin A, floor 5, Universitas Muhammadiyah Yogyakarta (UMY), on the behalf of Sri Sultan Hamengku Buwono X, Department Head of Agriculture of Yogyakarta Special Region Ir. Sasongko, M.Si. stated that the IKM has contributed 34.82% to the industry growth of non-Oil and Gas management. “It is supported by 3.6 million business units that 90 percent of the units are national industries. The units absorb 8.7 million labors that affect on the national economic growth and reduce poverty,” Ir. Sasongko read the speech of Sultan.

Therefore, the IKM possesses a significant role in national economy. Ir. Sasongko conveyed that the circumstance is in line with government’s vision in medium-term national development plan (RPJMN) 2015-2019, ‘to actualize Indonesia which is sovereign, independent, and qualified based on mutual cooperation’.

The development of the IKM also has assisted Indonesian to confront ASEAN Economic Community (AEC). Ir. Sasongko uttered that national economy will compete with economic agents across ASEAN countries. Products, services, and investment are free trade in ASEAN.

“Facing the AEC, government has attempted to enhance the competitiveness of industries and to encourage investment in industrial sectors. The industrial competitiveness is developed through the empowerment of industrial structures and preparing offensive and defensive strategies in market access,” Ir. Sasongko informed.

Government has reinforced the IKM sector through offensive and defensive strategies in various programs such as developing new business, evolving the products of IKM and the capability of the IKM center and UPT (Service Center), providing mechanical aid and production equipment, widening market access by promotion and exhibition, facilitating the registration of intellectual property rights, facilitating product and package quality certification, and funding through business credit (KUR).

“I wish that citizens could support all programs of government in industrial sectors, particularly in small and medium business so that the business can benefits many people,” Ir. Sasongko ended.

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