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BKPM matches SMEs with big firms to facilitate deals worth Rp 1.5t
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Rupiah bills (Shutterstock.com/Maciej Matlak)
T
he Investment Coordinating Board (BKPM) has helped local small and medium enterprises (SMEs) sign deals over Rp 1.5 trillion (US$106 million) with national and multinational corporations to boost small firms’ role in global value chains.
On Monday, 196 SMEs had signed partnership deals with 27 national and 29 foreign companies that plan to invest in the country, BKPM head Bahlil Lahadalia said, adding that more such partnerships and deals were expected regularly in the future.
Companies signing cooperation deals on Monday include publicly listed garment company PT Pan Brothers, which partners with 13 SMEs, and food and pharmaceutical manufacturer PT Cheil Jedang Indonesia (CJ Indonesia), controlled from South Korea, which is set to work with three SMEs.
“Good economic development is development that also promotes economic equality. In the future, we want every investment that comes into Indonesia to benefit local businesses as well,” he said during the signing ceremony on Monday.
The partnerships were also aimed at increasing investment outside of Jakarta and Java island, the BKPM stated.
The country’s small businesses, which account for more than 60 percent of the gross domestic product (GDP) and employ the vast majority of the labor force, have been hit hard by the COVID-19 outbreak as the economy entered its first recession in two decades last year.
The country’s realized foreign direct investment (FDI) picked up by 1 percent in the July to September period last year to Rp 106.1 trillion (US$7.21 billion) from the same quarter a year earlier. Meanwhile, realized domestic direct investment (DDI) rose to Rp 102.9 trillion in the third quarter, up 2.2 percent on the year.
