TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Crisis-proof SMEs sector will continue to grow despite crunch
When bad news seems to dominate the country's business environment, from delays in investment, cuts in production and revenue, to possible layoffs, one sector may again prove its resilience to external shocks -- small and medium-sized enterprises (SMEs)
Change Size
When bad news seems to dominate the country's business environment, from delays in investment, cuts in production and revenue, to possible layoffs, one sector may again prove its resilience to external shocks -- small and medium-sized enterprises (SMEs).
The industry, which famously survived the devastating 1997-1998 crisis without a government bailout, is set to grow next year by 8 percent, an official said.
Fauzi Azis, Industry Ministry director general for medium and small-scale industry, Wednesday said estimated growth -- which emulates the level of growth recorded over the past several years -- was respectable at a time when almost all other industries predicted cuts in production and revenue amid weakening demand.
"The reason why they can survive is because of their speciality products, which gives them an added value compared to mass products," Fauzi said, using a craft business in Yogyakarta that could weather the crisis as an example.
Moreover, the government's program on preserving the domestic market by limiting imports of "unnecessary products" will help the industry develop further.
"We can see that we can at least maintain growth," Fauzi said.
According to Fauzi, small and medium-sized companies numbered 3.5 million and employ around 7.7 million workers, with this year's export estimated to hit US$10 billion.
Ansyari Buchori, Industry Ministry director general of metal, machine and miscellaneous industries, said the government planned to issue a presidential decree soon to encourage the consumption of locally made products.
The regulation is expected to push consumption of national products, he said.
