RRI.CO.ID, Jakarta - Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, affirmed that small and medium industries (SMIs) play a highly strategic role in Indonesia’s industrial structure, making capacity building a key driver of economic growth and job creation. He made the statement in Jakarta on Sunday, July 19, 2026.

“SMIs account for 99.79 percent of all industrial business units across Indonesia and employ approximately 13.4 million workers. Strengthening their competitiveness is therefore essential to creating more employment opportunities and accelerating regional economic growth,” Agus said in an official statement.

The minister added that regions with abundant natural resources, such as Sukabumi Regency, need stronger manufacturing capabilities to generate higher value-added products.

“We support local SMIs, especially those in resource-rich areas like Sukabumi, in maximizing the processing of local natural resources to create greater economic benefits for communities,” he said.

Sukabumi is known for its strong livestock and fisheries sectors. Its extensive southern coastline in West Java and abundant inland fisheries offer significant opportunities to expand competitive food-processing industries. However, unlocking this potential requires efficient production machinery tailored to the needs of local businesses.

Through the assistance program, 16 appropriate technology machinery SMIs received intensive training to develop and manufacture fish and meat shredding machines. These machines are expected to improve production efficiency, maintain product quality, and support the growth of food-processing industries based on local resources.

In addition to collaborating with the National Research and Innovation Agency (BRIN), the Ministry of Industry partnered with the Indonesian Agricultural Machinery Association (ALSINTANI) to provide participants with insights into industry trends, market demands, and the importance of stakeholder collaboration in developing competitive innovations.

Director General of Small, Medium, and Miscellaneous Industries (IKMA) Reni Yanita said cross-sector collaboration is essential to strengthening SMI competitiveness, particularly in overcoming challenges related to technology access, quality standards, productivity, and research commercialization.

“Partnerships with various stakeholders are necessary to help SMIs overcome limitations in technology, quality standards, productivity, and the application of research for product development,” Reni said.

She added that collaboration between the Ministry of Industry, BRIN, industry associations, and businesses will accelerate the development of production machinery that meets market demand.

“Through this mentoring program, we hope machinery SMIs will continue working closely with BRIN and ALSINTANI to produce high-quality, productive, and affordable appropriate technology machinery,” she said.

Reni also expressed hope that the program would expand the product portfolio of machinery SMIs and improve their ability to respond to evolving market needs.

Throughout the program, participants received comprehensive training covering food-processing machinery, manufacturing product design, component fabrication and assembly, and machine testing. They also learned techno-economic analysis, including production cost calculations, to ensure their products are not only technically sound but also commercially viable and sustainable.

Acting Director of Metal, Machinery, Electronics, and Transportation Equipment SMIs at the Ministry of Industry, Budi Setiawan, said the program is expected to strengthen local industrial ecosystems by enhancing the technical capabilities of small manufacturers.

“We hope this Product Diversification Mentoring Program for Machinery SMIs will strengthen the technical capacity of appropriate technology machinery producers in Sukabumi, while encouraging the growth of local resource-based industries that create greater value-added products and generate more employment opportunities,” Budi concluded.