Jakarta, hitclubapk3 Indonesia
—
The phenomenon of micro, small and medium enterprises (
MSMEs
) swerved to become a seller of goods
import
China
making MSME Minister Maman Abdurrahman nervous.
Maman assessed that this phenomenon occurred because of the flood of imported products.As a result, labor absorption in Indonesia is not significant compared to when MSMEs sell their own products.
“So, he (UMKM) buys these goods in China, so he just markets them here,” said Maman at the BIG Conference 2025 at the Raffles Hotel Jakarta, Monday (8/12).
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“What is targeted at the Ministry of MSMEs is to increase the production sector so that the regional economy is more mobile than just being a trader or consumer. So, we want to ensure that in the future Indonesia is not just a market,” he explained.
The Golkar Party politician explained that absorption from the MSME sector actually accounts for 90 percent to 95 percent of the total national workforce.As a result of many small businesses turning to selling imported goods, it is claimed that the Indonesian economy is not moving.
Head of Center for Digital Economy and SMEs Institute for Development of Economics and Finance (INDEF) Izzudin Al Farras said imported goods from China are relatively cheaper.Moreover, weakening purchasing power makes consumers tend to buy goods at affordable prices.
Izzudin said that MSMEs are currently no longer focused on producing their own goods for three reasons.
First
, production input prices are already high.This is due to high logistics costs, small production scale which means economies of scale cannot be achieved, and raw materials are not always available in the domestic market.
”
Second
, initial capital costs are relatively lower for trading than producing goods yourself from within the country.”For example, initial capital costs for machines, HR (human resources), raw materials and certification,” Izzudin told
hitclubapk3Indonesia.com
, Wednesday (10/12).
“Moreover, modern production equipment is relatively expensive and unaffordable for some MSMEs. The implication is that profit margins are easier and quicker to obtain by trading,” he said.
Third
, rapid changes in consumer behavior and price sensitivity create challenges for MSMEs to produce their own goods.Izzudin explained that imported products from China are also easier to adapt to variations in design, model and features of goods sold in the marketplace.
According to Izzudin, the practice of selling imported goods continually causes local MSMEs to die and Indonesia becomes just a consumer market.Supposedly, Indonesia needs more entrepreneurs to become a developed country by 2045.
“Therefore, the government’s main focus is reindustrialization. The government must increase linkages between MSMEs and large businesses so that there is a transfer of knowledge so that MSMEs move up in class, incentives for communities that organize MSME training in various regions, evaluating tax policies for MSMEs and large businesses so that they are more synchronized,” he said.
Izzudin pushed for protection against dumping of imported goods.The government is also asked to ensure that Indonesia no longer just exports raw products, but is able to export semi-finished or finished products.
Loose Policies and the Threat of Becoming a Consumer Nation
Director of Economics at the Center of Economic and Law Studies (CELIOS) Nailul Huda said the root of the problem was the government’s policy of loosening the entry of imported goods too much.In the end, this makes the price of imported goods cheaper.
“Demand for imported goods cannot be contained, it is flowing rapidly, including goods that can actually be produced domestically,” criticized Huda.
On the other hand, Huda said that Indonesian society is still price-oriented (consumer-oriented), so price is the main factor in every purchase.
Meanwhile traders, including MSMEs, are the same as entrepreneurs in general looking for goods with high demand and looking to make a profit.
“With high demand for imported goods, traders will have the initiative to sell imported goods rather than local goods. Moreover, producing their own goods certainly requires large capital,” he said.
“If they are not protected from the threat of imported goods, MSME producers will suffer higher losses. If this continues, our nation will only become consumers,” warned Huda.
[Gambas:hitclubapk3 Video]
(pta)
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