Governments UMKM Holding Encourages Standardization of Production

The government is currently promoting the establishment of a Micro-, Small-, and Medium-scale Enterprises (Usaha Mikro Kecil dan Menengah– “ UMKM ”) holding, with one of its main focuses being production standardization. This step is being taken to create a supply chain ecosystem and to enhance the competitiveness of local UMKM products amid the surge in imports.

The Minister of UMKM, Maman Abdurahman, assures that standardizing the UMKM production sector can reduce costs and collectively increase capacity, enabling them to compete in an increasingly competitive digital market.

“For example, merchandise is consolidated with 500 UMKM under one corporation. It is consolidated into a business, where machinery is provided, and products are standardized, so that ultimately costs can be lowered,” said Maman.

Currently, according to Maman, the UMKM holding discourse is still under the coordination of the Coordinating Ministry for Economic Affairs. This plan is being collaborated on with the Ministry of UMKM, the Ministry of Industry, and the Ministry of Trade. The government is striving to harmonize policies to strengthen the production and distribution structure of UMKM.