Indonesia Receives US$5.5 Million Grant from South Korea to Improve SMEs

Indonesia Receives US$5.5 Million Grant from South Korea to Enhance SMEs

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TEMPO.CO, JakartaThe Indonesian authorities obtained grants amounting to US$5.5 million (equal to 7.2 billion South Korean gained or round Rp84 billion) from South Korea to extend the capability of small and medium enterprises (SMEs).

The grant is within the type of collaboration on good manufacturing facility adoption and coaching for human sources value US$5.5 million.

Deputy for Small and Medium Enterprises (UKM) of the Ministry of Cooperatives and SMEs, Hanung Harimba Rachman, said that the Official Growth Help Mission (ODA) collaboration between the Indonesian and South Korean governments geared toward serving to native SMEs undertake the economic ecosystem 4.0 to enter the economic provide chain.

“This can be a collaborative step to assist SMEs in adopting the economic ecosystem 4.0, making use of good factories, Web of Issues (IoT), and Synthetic Intelligence (AI) know-how to enter the manufacturing trade provide chain. This is a crucial step, particularly since South Korea is superior within the manufacturing trade,” mentioned Rachman after the signing of a memorandum of understanding (MoU) between the Ministry of Cooperatives and SMEs and the INNOBIZ Affiliation of South Korea relating to the ODA Mission in Jakarta, on Tuesday.

The South Korean authorities initiated cooperation with the Indonesian authorities to help the event of SMEs by means of the “ODA Mission: Mission for Supporting the Transformation into Good Manufacturing unit and Coaching Specialised Manpower in Java Province for Innovation in Indonesian Manufacturing Business.”

Beneath this venture, 30 SMEs can be beneficial by the ministry to obtain coaching on adopting good factories at universities. As well as, coaching can be performed for 100 specialists on good manufacturing facility operations by means of a collaboration that can final for the following 4 years, Rachman elaborated.

He said that this system focused SMEs within the automotive, manufacturing, meals and beverage, textile, electronics, chemical, and agricultural sectors.

In the meantime, Coverage Head of INNOBIZ Institute, Se-jong Kim, defined {that a} good manufacturing facility service middle can be constructed on the Indonesian college to facilitate this system with the coaching curriculum.

“Now we have constructed 30 thousand good factories in South Korea. We’ll invite them to Indonesia to share experiences, or vice versa, they’ll additionally go to South Korea instantly. We hope this program can enhance SMEs’ capability in Indonesia,” Kim said.

It’s hoped that the collaboration with INNOBIZ, which is an SME certification establishment in South Korea, can help the Indonesian authorities in creating schemes, analysis, and insurance policies associated to SME certification in accordance with the enterprise ecosystem in Indonesia.

Hopefully, the certification for SME entrepreneurs will turn into an asset for them to avail numerous amenities, together with acquiring entry to financing from banking establishments and different various sources of financing which might be based mostly on credit score scoring, Rachman said.


Editor’s Selection: Indonesia, South Korea Advances New Capital Metropolis Mission Collaboration

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