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Ministry of Industry to build ‘Material Center’ IKM Furniture in Jepara

24 January 2020 08:50

JAKARTA - The Ministry of Industry will build a material center to meet the needs of raw materials for small and medium industry players (IKM) which produce furniture products in Jepara, Central Java. This is aimed at sustaining business sustainability and increasing competitiveness in the export-oriented sector.

"Access to raw materials is very important because it is a challenge for our SMEs right now in order to get raw materials in accordance with market specifications," said Director General of Small, Medium and Miscellaneous Industries (IKMA) of the Ministry of Industry Gati Wibawaningsih in Jakarta, Thursday (23 / 1).

The Director General of IKMA explained, the concept of material center operations in Jepara later included four business models, namely related to production planning inventory control (PPIC), a collective machinery rental service business, a standard and supporting raw material management model, and a logistical management model for SMEs.

In addressing the financing problem, continued Gati, SMEs can now take advantage of the KUR program offered by banks. In 2020, there is a new policy related to KUR which will greatly benefit SMEs, including reducing interest rates from 7% in 2019 to 6% in 2020.

Then, the limit for micro KUR in 2020 will increase from Rp 25 million to Rp 50 million per debtor. In addition, the KUR limit has increased in total from Rp140 trillion in 2019 to Rp190 trillion in 2020. (LM)

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