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Pesta Rakyat UMKM untuk Indonesia: Sampoerna and Kadin empowers MSME for economic growth

PT HM Sampoerna Tbk. (Sampoerna), in partnership with the Indonesian Chamber of Commerce and Industry (Kadin), organized “Pesta Rakyat UMKM untuk Indonesia”.

Front Row (The Jakarta Post)
Jakarta
Wed, July 24, 2024 Published on Jul. 24, 2024 Published on 2024-07-24T21:34:43+07:00

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Pesta Rakyat UMKM untuk Indonesia: Sampoerna and Kadin empowers MSME for economic growth

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T HM Sampoerna Tbk. (Sampoerna), in partnership with the Indonesian Chamber of Commerce and Industry (Kadin), organized “Pesta Rakyat UMKM untuk Indonesia. This event is aligned with the Indonesian government's priority to accelerate inclusive and sustainable economic transformation through the empowerment of medium, small, and micro enterprises (MSMEs). It also highlights effective collaboration and synergy among stakeholders, adopting a multi-helix approach that includes the government, business associations, the private sector, academia, and society at large.

The event, held at the Jakarta Convention Center’s (JCC) Assembly Hall, was officially opened by Coordinating Economic Minister Airlangga Hartarto accompanied by Cooperatives and Small and Medium Enterprises (SMEs) Minister Teten Masduki, and was attended by more than 1,250 MSMEs mentored by Sampoerna and Kadin Indonesia. “Pesta Rakyat UMKM untuk Indonesia” featured panel discussions, MSME workshops, and exhibitions designed to help entrepreneurs grow their businesses, build networks, and expand their market globally through exports.

Airlangga remarked, "The government recognizes the critical importance of mentoring and supporting MSMEs to help them export. We continue to encourage medium and large enterprises to engage in partnership programs with MSMEs. The private sector has a vital role to play, not only as off-takers but also in building sustainable value chains and developing MSMEs with an export-oriented market and global competitiveness."

Inclusive collaboration among various stakeholders, including Sampoerna, KADIN Indonesia, and the Task Force for National Exports Acceleration, contributes significantly to the capacity development of MSMEs nationally. The initiative is in line with the government's efforts to boost exports, strengthen the trade balance, and drive economic growth through the development and expansion of MSME exports. This collaboration is also aimed at advancing the national economy, creating a potential multiplier effect for the wider community.

This collaboration, utilizing a multi-helix model across stakeholders to support Indonesian MSME export capacity, has also received appreciation from the Cooperatives and SMEs Ministry. “I would like to appreciate the partnership initiative between Sampoerna, KADIN, and JETRO. We must continuously support MSME exports amid all the challenges. Therefore, business aggregators and partnerships become important in helping MSMEs penetrate the global market,” Teten said.

At the event, Kadin Indonesia, Sampoerna, and the Japan External Trade Organization (JETRO) also launched the Advanced WikiExport Program: "Technology Enhancement for Indonesian MSME Exports". This program focuses on harnessing the Internet of Things and artificial intelligence (AI) to accelerate the number of Indonesian export-ready MSMEs. This initiative aligns with the Indonesian government's focus on encouraging more MSMEs to penetrate global markets. In 2023, the Cooperatives and SMEs Ministry reported that MSMEs contributed only 15.7 percent to national exports, a figure lower than that of neighboring ASEAN countries such as Thailand at 28.7 percent, Vietnam at 20 percent and Malaysia at 17.3 percent.

The commitment to boost national exports and market access for MSMEs is a key component of the WikiExport program, an initiative launched by Kadin Indonesia in October 2022 alongside the Inclusive Partnership Movement for Upgrading MSMEs. So far, over 200 MSMEs have received certified export education and training through this program. In 2023, WikiExport successfully prepared nine Indonesian MSMEs for export, leading to business matching events that generated transactions worth Rp 16.2 billion (US$ 1 million).

Kadin Indonesia Chairman Arsjad Rasjid expressed that this program aims to increase the number of MSMEs ready to export and expand potential export markets. "The role and contribution of MSMEs are crucial in achieving the national economic growth target of 8 percent. The growth of export-oriented MSMEs strengthens the fundamental aspects of the national economy. The collaboration with Sampoerna at “Pesta Rakyat UMKM untuk Indonesia” today is a concrete example of the kind of synergy that needs to be enhanced to develop globally competitive, export-oriented MSMEs," he explained.

Kadin Indonesia also introduced the AyoBerkadin! initiative for MSMEs. Through this program, MSME entrepreneurs are invited to become Kadin members to receive education, capacity development, mentoring, business consultations, networking opportunities, and the chance to participate in MSME exhibitions at the national and international levels.

At the same event, JETRO President Director Takahashi Masakazu also highlighted the positive impact of the collaboration and synergy between Sampoerna, Kadin Indonesia, and JETRO. "We are proud to contribute to the export capacity development of Indonesian MSMEs. JETRO remains committed to supporting the enhancement of export capacity and quality of Indonesian MSMEs, particularly to increase their presence in the Japanese market. We also hope that more new Indonesian MSME entrepreneurs will participate in this program," he concluded.

The private sector is essential to fostering inclusive economic growth by empowering MSMEs, with Sampoerna taking an active role. Sampoerna's efforts to develop the MSME sector are rooted in its beginnings as a small business in Surabaya over a century ago. “Pesta Rakyat UMKM untuk Indonesia”, held as part of Sampoerna's 111th-anniversary celebrations, underscores the company's ongoing commitment to MSME empowerment in Indonesia.

Sampoerna President Director Ivan Cahyadi emphasized that collaboration and synergy are crucial for the rapid and focused development of MSMEs. “In fostering MSMEs, Sampoerna prioritizes a multi-helix collaboration model, engaging in inclusive partnerships with the government, business organizations, academia, the private sector and, of course, the media and other stakeholders. Therefore, we greatly appreciate the collaboration established with Kadin Indonesia at “Pesta Rakyat UMKM untuk Indonesia,” he said.

Sampoerna consistently works to uphold its commitment to nurturing and supporting MSME entrepreneurs, helping them grow and expand into global markets. Through its sustainability initiative, “Sampoerna for Indonesia,” the company runs two flagship programs for MSME empowerment: the Sampoerna Retail Community (SRC) for small retail shops since 2008 and the Sampoerna Entrepreneurship Training Center (SETC) for other entrepreneurs since 2007. These programs have collectively supported over 320,000 MSME entrepreneurs across Indonesia.

Looking ahead, Ivan commits for Sampoerna to continue to play an active role in promoting national economic growth. He emphasized that the advancement of MSME entrepreneurs is vital to achieving Indonesia’s goal of strengthening its human resources. “Empowering MSMEs through mentoring is our way of developing superior human resources, enhancing the skills and competencies of MSME entrepreneurs, contributing to the broader society, and benefiting the nation.”

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