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Kemenperin Is Pushing Food Industry SMEs To Implement Food Production Safety Measures

The food and beverage industry is a major player in the national economy, especially within the non-oil and gas processing sector. In the second quarter of 2024, this sector made up a significant 38.4 percent of the non-oil and gas processing GDP.

"This substantial role is driven by the export performance of the food and beverage industry, which reached USD 3.78 billion in August 2024, contributing 21.36 percent of the total export value for the non-oil and gas processing sector," said Reni Yanita, the Director General of Small, Medium, and Miscellaneous Industries (IKMA) at the Ministry of Industry, during a statement in Jakarta on Monday, October 21.

The Director General emphasized that they are actively working to boost the performance of the food and beverage industry, particularly for small and medium enterprises (SMEs), to enhance their competitiveness and contribution to the national economy. "One of our efforts is to connect SMEs in the food and beverage sector with other economic sectors, both upstream and downstream," she explained.

In addition to linking SMEs with business partners, the IKMA also facilitates connections between food and beverage SMEs and larger industries that have Corporate Social Responsibility (CSR) programs to support SME development. "This is done to ensure that all development opportunities for SMEs, including those from larger industries, are effectively targeted," Reni added.

She noted that CSR initiatives from businesses are crucial for the growth of SMEs, particularly in the food and beverage sector, which accounts for a significant portion of the economy, with 39.7 percent of total SME units in Indonesia and employing 36.5 percent of the total workforce in the SME sector.

The collaboration between small and medium enterprises (SMEs) and large industries is highlighted by the signing of a Memorandum of Understanding between the Directorate General of Small and Medium Industries and PT. Arwana Citramulia TBK. This partnership also included a symbolic handover of ceramic assistance in Singkawang City, West Kalimantan.

“We're teaming up with Arwana Ceramics again after our previous partnership in 2013, where we provided CSR support for clean kitchen facilities for sugar SMEs in Banjarnegara, Purbalingga, Banyumas, Cilacap, and Kebumen, totaling 12,000 square meters of ceramics,” Reni explained.

In 2017, CSR support was extended to food SMEs in Rote Ndao, NTT, with 4,500 square meters of ceramics, and 2,200 square meters in Rejang Lebong, Bengkulu. Then in 2022, assistance was given to sugar SMEs in Purbalingga and Banyumas, iodized salt SMEs in Pati, and snack SMEs in Mojokerto, amounting to 10,000 square meters of ceramics.

Reni mentioned that in 2024, the Directorate General of Small and Medium Industries and PT Arwana Citramulia Tbk will collaborate again to provide 10,000 square meters of ceramic support to 36 SMEs in tofu, seafood processing, and food in Singkawang, as well as to tofu and tempeh SMEs in Salatiga, iodized salt SMEs in Pati and Karangasem, and palm sugar SMEs in Pacitan.

“With this assistance, we hope that the SMEs, groups, or cooperatives involved in the program can meet food safety standards, creating a productive ecosystem and enhancing the competitiveness of SMEs,” Reni added.

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Tag: Kemenperin National Economy The Food And Beverage Industry