Expanding Commodity Market, Government Encourages Papuan MSMEs to Enter Digital Ecosystem

Minister of Cooperatives and SMEs (MenKopUKM) Teten Masduki asked MSME actors from Papua to focus on developing superior commodities that other regions do not have and expanding market reach through the digital ecosystem.

The reason is, Teten assesses that the current Papuan MSME products are good and not inferior to product packaging that is widely spread on the island of Java.
 
"It could be the showcasing of MSME products, especially with the increasing number of assistance, product curation, packaging branding that makes MSME products in Papua more attractive," Teten said in a written statement, Wednesday (31/8).

The Ministry of Cooperatives and SMEs (KemenKopUKM) has a target for the KUMKM Integrated Business Service Center (PLUT) to assist MSMEs so that they enter the digital ecosystem, both at the local Government Goods/Services Procurement Policy Institute (LKPP) for government procurement and in e-commerce. This is so that products from Papua can enter a wide market through the digital ecosystem.

"I think that what this PLUT is accompanied by, it must be started and determined by MSME products that have local advantages. What will be the characteristics of Papua, which will be for the local market and which will be for the national market,” said Teten.

Where PLUT will be able to help take care of distribution permits, including MSMEs that have joined PLUT for piloting the implementation of KUR clusters.
 
"We are trying so that MSMEs connected to this PLUT can access financing easily, namely KUR Cluster with a maximum financing of Rp 500 million," he said.

The government has now instructed 40% of the central and regional budgets to purchase KUMKM products. So that in order to achieve this, MSME products must be assisted in entering the e-catalog first. And MSMEs have been given the convenience to enter through LKPP.

Teten further emphasized that Papua has many superior commodities ranging from coffee, sago, marine products, to red fruit. There is even a breadfruit commodity which is currently being researched by a company, so that it can be processed into gluten free flour and products for baby food which are expected to capture a wider market. This is requested to be developed into a superior commodity from Papua.

“I suggest each region to have its own product advantages. Papua is abundant when it comes to superior commodity products. Not only marine products and forest products are maximized by cooperatives to aggregate their products so they can access financing," said Minister Teten.

For example, coffee from Papua, although still limited in terms of capacity, the Provincial Government has started to grow coffee in the Bintang Mountains.

Even Teten believes, if Papua continues to focus on its superior commodity products, this can become the economic strength of the local community.

“New Zealand, for example, why do I always compare. That's because only with 3 commodities namely meat, milk, and kiwi fruit but the people prosper. Papua is not inferior, marine products, forest products, red fruit, coffee, chocolate need to be determined as superior commodities, so that regional handling and support, as well as research research can be optimized to produce quality products, "explained Teten.

SOURCE : https://industri.kontan.co.id/news/percepat-pasar-komoditas-government-push-umkm-papua-enteri-ekosistem-digital