Help MSMEs to access production technology

Current Policy

The recently issued Government Regulation No. 7 of 2021 on the Ease, Protection and Empowerment of Cooperatives and MSMEs (GR 7/2021) touches upon the issue of shared production technologies. The regulation outlines the clustering of micro and small enterprises by the National Government, Regional Government, and other relevant stakeholders. These clusters will be organized based on either a general product chain, dependence on similar workforce skills, or the use of similar technologies that are complementary in an integrated manner. They will receive assistance for their production process, which includes facilities and infrastructure (provision of land and buildings to be used as the location where the process of production takes place), as well as the machinery and equipment required for production. To ensure that MSMEs understand how to use new production machinery and equipment, GR 7/2021 further includes competence training as part of the provision for integrated MSME production¹. However, although there have been reports of factory sharing initiatives by the Ministry of Cooperatives and MSMEs, these are currently limited to only several Indonesian provinces². Issuing an operational regulation on the integrated management and shared production technologies can smoothen the policy implementation at the ground level and allow regional governments to actively participate in the process, especially since they are involved in the development of micro and small enterprises³.