RRI.CO.ID, Jakarta - Minister of Industry Agus Gumiwang Kartasasmita has announced a strategic policy reform to secure the supply chain for small and medium industries (IKM).

By strengthening the Raw Material and Auxiliary Material Provider Centers (PPBB) scheme, the government aims to eliminate logistical bottlenecks that have long undermined the competitiveness of local manufacturers.

Although IKMs are considered the backbone of the economy, many continue to face difficulties in sourcing raw materials that meet industrial standards. They often rely on imports, but small businesses struggle with high costs due to low import volumes and complex licensing requirements.

“These policy reforms are being implemented continuously to maintain the continuity of SME production processes, while also adapting to the dynamics of the business climate and applicable legal provisions,” Agus said in a press release on Monday, January 19, 2026.

He explained that the PPBB scheme functions as a collective import gateway, enabling small businesses to access global materials that were previously out of reach.

To prevent misuse, the Ministry is finalizing a new regulation to govern these supply hubs. Under the proposed rules, PPBB entities must be Indonesian legal bodies, have a minimum warehouse capacity of 500 square meters, and serve at least five different IKM clients.

Distribution will be strictly monitored to ensure materials reach the intended recipients. “Imports of raw materials through PPBB ensure that they are distributed on target, as these imports can only be delivered to SMEs that have an ordering contract with PPBB,” Agus said.

The policy allows hubs to submit import plans through the Commodity Balance (Neraca Komoditas) mechanism or other statutory regulations. Agus emphasized that this affirmative measure is designed to strengthen small industries and stabilize domestic production.

Reni Yanita, Director General of Small, Medium, and Miscellaneous Industries, said the government is simplifying administrative procedures by integrating applications into the National Industrial Information System (SIINas).

This digital system enables companies holding General Import Identification Numbers (API-U) to apply for PPBB status more easily, provided they meet the required criteria. “With this policy, it is hoped that business actors holding API-U will not experience difficulties in obtaining PPBB status,” Reni said.

She added that PPBB entities remain obligated to report industrial data regularly to maintain transparency and accountability. Through this strengthened supply network, the government expects IKMs to achieve higher productivity and lower production costs, ultimately boosting national economic growth. (Naura Sofia/Lasti Martina)