*Minister Suharso Explains MSME Development Through Value Chain Strengthening

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Laporan : Erwin Silitonga

JAKARTA,poskota – Minister of National Development Planning attended Multilateral Meeting, discussing the strategic issue of MSME development in the Government Work Plan 2022, which held physical and virtual, Tuesday, May 25, 2021

On this occasion, the Minister highlighted the MSME development approach through strengthening value chains through strategic partnerships.

“Partnership is business cooperation between UMK and UMB, accompanied by coaching and development by Medium and / or Large Enterprises, by paying attention to the principles of mutual need, mutual strengthening and mutual benefit,” said the Minister.

The minister said, there were 6 key factors for strategic partnerships. First, the value chain approach in developing MSMEs. Second, prioritizing business to business principles that require, need, and benefit from each other. Third, UMB / buyer (offtaker) must have values and commitment to improve the welfare of partners and be willing to carry out joint coaching with the Government.

Fourth, the selection of locations and commodities must be in accordance with market conditions and needs. Fifth, continuous coaching and mentoring is carried out by the Business Development Officer as a technical and technology intermediary. Sixth, regular monitoring and evaluation.

In addition, the Minister also emphasized the importance of the role of stakeholders. The government through the collaboration of various Ministries / Agencies initiated the development of strategic partnerships, provided field assistants for 3 years, provided joint production houses, coordinated the provision of a team of experts, carried out institutional strengthening, collected data on potential commodities and their development.

Meanwhile, medium and large enterprises provide information or technical assistance, particularly in relation to transfer of skills and technology, provide information on market needs and prices and provide market certainty.

Finally, the Business Development Officer acts as an intermediary between MSEs and UMB and provides technical and institutional assistance.