RRI.CO.ID, Jakarta – The Ministry of Industry, through the Directorate General of Small, Medium, and Miscellaneous Industries (IKMA), has consistently implemented various strategic measures to maintain growth and sustainability in the national fashion industry. These efforts include technical guidance programs, facilitation of machinery and equipment, certification based on the Indonesian National Work Competency Standards (SKKNI), and the development of small and medium industry (SMI) centers through the Special Allocation Fund (DAK) scheme in collaboration with local governments.

Minister of Industry Agus Gumiwang Kartasasmita stated that the inauguration of the Seri Kuala Lobam Fashion Industry Center in Bintan Regency, Riau Islands, is part of the government’s strategy to strengthen a region-based national fashion industry ecosystem. According to him, the development of SMI centers plays a strategic role in increasing production capacity, improving product quality, and enhancing the competitiveness of small and medium industry players so they can meet both domestic and international market demand.

“We continue to encourage the strengthening of SMI centers as sustainable regional industrial growth hubs, while also serving as a means to increase added value and create jobs,” Agus Gumiwang said in an official statement on Tuesday (27/01/2026).

Echoing this statement, Director General of IKMA Reni Yanita explained that the Seri Kuala Lobam Fashion Industry Center will serve as a strategic production hub capable of strengthening the competitiveness of Indonesia’s fashion SMIs. She also expressed appreciation for the synergy between the Ministry of Industry, the Bintan Regency Government, and the Riau Islands Provincial Government in developing the center.

“We are promoting this center as a shared production house as well as a platform to enhance SMI capacity, ranging from access to production facilities and technical training to strengthening business management,” Reni said during the inauguration of the Seri Kuala Lobam Fashion Industry Center in Bintan Regency on Wednesday (21/01/2026).

Reni Yanita added that the fashion industry makes a significant contribution to community economic circulation and national economic growth. The Ministry of Industry recorded around 590,000 ready-made garment SMI business units, employing approximately 1.2 million workers. “Therefore, developing SMI centers is a concrete step to strengthen the sector’s role within the national industrial structure,” she noted.

She further explained that budgetary support and development facilities for the Seri Kuala Lobam Fashion Industry Center are provided through the physical DAK mechanism for the 2024 and 2025 fiscal years. In addition to physical infrastructure development, the government also allocated non-physical DAK in the 2025 fiscal year to support institutional capacity building for the center’s management.

The Seri Kuala Lobam Fashion Industry Center boasts several competitive advantages, including modern production facilities equipped with machinery and equipment to support product quality standardization, a strategic location, and its position within the Kuala Lobam Free Trade Zone (FTZ), which offers zero-percent export and import duties.

Moreover, its geographic proximity to major export destination countries such as Malaysia, Singapore, and the Philippines supports logistics cost efficiency. “These advantages are expected to serve as a catalyst for fashion SMI players in Bintan Regency to enhance competitiveness and expand access to export markets,” she said.

Meanwhile, Director of Chemical, Textile, and Handicraft SMIs at the Directorate General of IKMA, Budi Setiawan, stated that although the center was only recently inaugurated, it has already received a strong performance assessment with a score of 4 out of 5 in the fourth quarter of 2025, as it has been operating regularly. He expressed hope that the center will serve as a bridge for SMI players to enter the supply chains of large industries within industrial zones, while also fostering mutually beneficial and sustainable partnerships.