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Jakarta Post

KKI: Engaging millennials in MSMEs as new economic force

Inforial (The Jakarta Post)
Jakarta, Indonesia
Wed, November 25, 2020

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KKI: Engaging millennials in MSMEs as new economic force Pagelaran Karya Kreatif Indonesia (KKI) Series 3 or Indonesia’s Creative Creation Exhibition, held from Nov. 20 to Nov. 22, carries the theme “UKM Sahabat Milenial” (MSMEs: Friends of Millennials). Pictured as speakers on the first day of the event are (clockwise from upper left) Bank Indonesia Governor Perry Warjiyo, First Lady Iriana, Villages, Disadvantaged Regions and Transmigration Minister Abdul Halim Iskandar and Education and Culture Minister Nadiem Makarim. (Courtesy of Bank Indonesia)

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ank Indonesia-organized Pagelaran Karya Kreatif Indonesia (KKI) Series 3 or Indonesia’s Creative Creation has ended, with the millennial generation expected to be actively engaged in micro, small and medium enterprises (MSMEs) as Indonesia’s new economic force.

Bank Indonesia (BI) Senior Deputy Governor Destry Damayanti asked the millennial generation to take pride in wastra (traditional fabrics) as she believed that by having millennials support local products, there was potentially a huge market for Indonesian MSMEs.

Destry made the remarks on the final day of the KKI Series 3, themed “MSMEs: Friends of Millennials”. The event was held entirely online from Nov. 20 to Nov. 22. 

The importance of engaging the millennial generation in the realm of MSMEs was highlighted by BI Governor Perry Warjiyo and First Lady Iriana, who spoke on the first day of the KKI Series 3 on Nov. 20.

Perry expressed his optimism that the Indonesian millennial generation had the potential to drive the development of new MSMEs as Indonesia’s new economic force.

The millennial generation had a resilient spirit and high entrepreneurship culture, which could potentially give birth to new “millennial-preneurs” (millennial entrepreneurs) that excel in the global market, said Perry.

According to Perry, the theme “MSMEs: Friends of Millennials” reflects an expectation and, at the same time, optimism about the contribution of millennial entrepreneurs to the nation’s prosperity and economy in the future.

Iriana said that the millennial generation, whose characteristics included high adaptiveness to digital technology and wide networking capabilities via social media, had the potential to become entrepreneurs.

“Now is the right time to instill an entrepreneurship culture in the Indonesian millennial generation to enable them to create products that are increasingly recognized overseas, which will, in turn, take part in propelling the wheel of the national economy,” Iriana said.

The annual KKI Exhibition is a string of activities that displays products of MSMEs that BI helps develop, in collaboration with ministries and institutions.

The fifth edition of the KKI Exhibition comprised series 1, 2 and 3. The KKI Series 1, held from Aug. 28 to 30, carried the theme “Synergy for MSMEs Export” and Series 2, held from Oct. 7 to 9, was themed “Synergy for Digital MSMEs”. 

KKI 2020 was participated by 379 BI-fostered MSMEs comprising 127 cloth artisans, 75 craftspeople, and 177 producers of processed foods and beverages.

Apart from showcasing premium cloths and handicraft products produced by BI-assisted MSMEs through a virtual platform on the KKI website, www.karyakreatifindonesia.co.id, the KKI Series 3 also featured other programs including a coffee dialogue, onboarding education, business meeting and consultation and fashion show.

The final day of the KKI Series 3 displayed a creative creation, themed “Wastra Nusantara Balut Milennial Bergaya” (Traditional Fabrics Cover Stylish Millennials).

The fashion show featured the works of young designer Didiet Maulana, who processes Tanimbar woven cloths produced by BI-fostered Group Rasalsam from Maluku province, and designer Ayu Dyah Andari, who processes Tenun Lurik (Javanese woven cloth) produced by BI-fostered Tugu Mas from  the Yogyakarta Special Region.

To boost the added value of local fabrics produced by MSMEs, BI collaborates with national designers so that MSME-produced fabrics can cater to the market’s tastes, especially the millennial generation, according to Destry Damayanti.

The collaboration is expected to serve as a means of promotion for the lovers of traditional fabrics and the public at large and, at the same time, a tool to market MSME products internationally through fashion shows participated by local designers.

BI also creates synergy with various ministries and agencies to enhance MSMEs, especially in the aspect of production, marketing and financing capacity. “We are also engaged in curating activities by collaborating with international curators,” she said.

The KKI’s fashion show, one of the strategies to provide BI-fostered MSMEs throughout Indonesia with increased market access, is part of the central bank’s effort to develop MSMEs in upstream and downstream activities.

Overseas coffee market

Meanwhile, in the coffee dialogue titled “Kulak Kulik Nikmatnya Bisnis Kopi” (Knowing More about the Benefits of Coffee Business), a joint event by BI and the Specialty Coffee Association of Indonesia (SCAI) on Nov. 21, BI Deputy Governor Doni P. Joewono said that domestic coffee consumption continued to increased, largely driven by the emergence of coffee cafes operated mostly by millennials in urban areas as coffee drinking had become a part of their lifestyle.

Doni said that amid the thriving coffee business, BI conducted a number of programs to develop coffee businesses run by MSMEs in BI representative offices across Indonesia, with skill and growth enhancements provided in the upstream to downstream sectors to optimize the quantity and quality of the coffee commodity domestically. 

Thanks to the initiative, of the 62 BI-fostered MSMEs engaged in coffee production, 14 have managed to penetrate the overseas market, either directly or indirectly.

In collaboration with related institutions and agencies and the community, BI spurs the growth of MSMEs in the upstream field comprehensively by helping conserve land, providing clean water and preparing processing machines, including coffee bean peeling machines.

In the downstream field, BI holds various coffee festivals at home and provides training, including how to curate coffee products ready for export. It has also taken the initiative to build educational coffee tourism aka coffee “edu-tourism”. Kopi Kiwari, a BI-fostered MSME engaged in the coffee business in West Java, is a pilot project in edu-tourism aimed at getting young people to love coffee.

Doni said that BI also continued to support digitalization of MSMEs, either for product marketing or to assist MSMEs in payment transactions by taking advantage of the Quick Response Indonesian Standard (QRIS) code.

In spurring the digitalization of MSMEs, BI provides an onboarding program for MSMEs via online learning related to MSMEs’ strategies. This allows them to stay connected with digital platforms, photography techniques and logistics and helps them prepare bookkeeping and other things that support MSMEs in the digital era.

Speakers in the coffee dialogue included SCAI chairman Syafrudin, Junanto Herdiawan Head of BI Employee Association, CeriTech co-founder and CEO Aldi Raharja, actor and coffee business player Chicco Jerikho and professional barista Yessylia Violin A.

Syafrudin said that SCAI, in collaboration with BI and other stakeholders, had been working to educate coffee farmers on how to increase quality and quantity in production, and “no less important is how to ensure supply chain sustainability.”

Looking ahead, BI will always commit to creating synergy with various ministries and relevant institutions to constantly develop MSMEs, so as to enable them to become the backbone of local economies and the national economy toward an advanced Indonesia.

For those eager to see the products of the BI-led MSMEs, BI provides an e-catalogue that can be accessed through www.karyakreatifindonesia.co.id.

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