It’s not always easy to grow a business, especially for small businesses, during the COVID-19 pandemic. The government acknowledges this situation and has started taking the necessary steps needed to facilitate Small Medium Enterprises (SMEs) Growth.
The Ministry of Investment/Indonesia Investment Coordinating Board (BKPM) works hard to ensure that even small businesses can shine. The main mission is to support SMEs to go global and be able to compete internationally.
These efforts include the Ministry of Investment/BKPM’s collaboration with major companies like Gojek. BKPM also has a collaborative relationship with the BUMN to pave the way for SMEs to go global. Aside from that, there have also been efforts from PT Pertamina to help SMEs go global by hosting the Pertamina UMK Academy.
Ministry of Investment Collaborates with Gojek to Empower MSMEs
The Ministry of Investment/BKPM has signed a Memorandum of Understanding (MoU) with PT Aplikasi Karya Anak Bangsa (Gojek). The collaboration includes information dissemination activities for business licensing for MSMEs, facilitation of business establishment to resolving business barriers for MSMEs, as well as fostering and developing skills for digital-based MSMEs.
The goal is to develop Digital-based Micro, Small and Medium Enterprises (MSMEs) in Indonesia. The Ministry of Investment/BKPM also aims to legalize or help provide ease of licensing to as many MSME actors as possible throughout Indonesia. This MoU is one of the many efforts by the government to provide convenience to MSME actors, especially under the auspices of Gojek
Riyatno, the Deputy Chairman for Investment Cooperation, who represented the Ministry of Investment/BKPM in signing this collaboration in July 2021 stated that the Risk-Based Online Single Submission System (OSS) will especially help SMEs to get licensing for their business.
Collaboration between the Ministry of SOEs (BUMN) and the Ministry of Investment/BKPM to Ensure MSMEs Go Global
As of today, in September 2021, the Risk Based OSS has officially been launched. This system is the fruit of the collaboration between the integration of MSME PaDi (Digital Market) owned by the Ministry of SOEs with the OSS system owned by the Ministry of Investment/BKPM.
The Collaborative Agreement (PKS) between the two ministries provides MSMEs fostered by SOEs and/or registered on the PaDi platform MSMEs with access and ease of obtaining business permits, large investment facilities, partnerships, resolving business barriers, dissemination of the Investment Activity Report (LKPM), to capacity building and competency development of Human Resources (HR).
The OSS is regulated under the Job Creation Law (UU CK) and Government Regulation No. 5 of 2021 concerning Implementation of Risk-Based Business Licensing. Business licenses are categorized based on the level of business risk. For example, low risk Micro, Small and Medium Enterprises (MSMEs) will get the convenience of a single license, where the Business Identification Number (NIB) applies as legality, the Indonesian National Standard (SNI), and the Halal Product Guarantee Certificate (SJPH) for business actors whose products are legal. or the service must be SNI and halal.
These facilities are provided by the government for MSEs with low risk. The lower the level of business risk, the easier and cheaper the licensing will be. MSEs do not need to bother and be busy looking for permits.
PT Pertamina Shares Their Strategy for SMEs to Go Global
PT Pertama has officially created the Pertamina UMK Academy. The Pertamina UMK Academy event was able to encourage Pertamina’s fostered partners to advance to class progressively. In 2020, there were 61 foster partners who successfully graduated as UMK Go Global. This year, this number will continue to increase. One way to do that is by providing insight into exports at the UMK Academy 2021 participants in the Go Global class.
The first lecture at the Go Global Class was by the director of Export Development Cooperation, Ministry of Trade, Marolop Nainggolan. In his presentation, Marolop gave a lot of tips about when is the right time for MSEs to export. Marolop revealed that research is one of the most important things to work on when preparing to export a product. Research must be done to find out what products are best for the target country, including what colours, motives, and other aspects will suit that country most.
More detailed information about export opportunities for SMEs in Indonesia was explained by the Trade Analyst of the Directorate of Market Development and Export Information, Ministry of Trade, Widy Haryono. Widy Haryono made a point to share data on Indonesian export opportunities that Indonesian SMEs can enter. That way, the SMEs present at the class can have a better idea of which market is more accessible for them.