Indonesia Expands Partnerships Between Small Industries and Major Manufacturer

RRI.CO.ID, Jakarta - Indonesia’s Ministry of Industry is stepping up efforts to bring small and medium industries (IKM) into the national industrial supply chain. One of the initiatives is connecting promising metal-based IKM with large-scale manufacturers to establish sustainable business partnerships, increase the use of locally made products, and strengthen Indonesia’s manufacturing structure.

Minister of Industry, Agus Gumiwang Kartasasmita, said in Jakarta, Sunday, August 9, 2026, IKM play an important role in national industrial development, including driving economic activity and creating jobs. He stressed that partnerships between IKM and large manufacturers need to be expanded to help small businesses improve their capacity, quality, and competitiveness.

“Small and medium industries play a major role in driving economic activity and employment. Strengthening partnerships between IKM and large manufacturers is therefore a strategic step to improve their performance while reinforcing the resilience of Indonesia’s manufacturing industry,” Agus said.

According to him, the metal industry holds a strategic position in Indonesia’s manufacturing structure, supplying components and supporting products for various sectors, including automotive, heavy equipment, medical devices, construction, and machinery. As industrial needs continue to diversify, there is significant room for metal-based IKM to play a greater role in the supply chains of major manufacturers.

“When IKM become part of the supply chains of large manufacturers, both state-owned and private companies, and participate in vendor development programs, they have greater opportunities to increase production capacity and skills. This will enable IKM not only to meet industrial demand but also to contribute to a stronger national supply chain,” he said.

The Minister also highlighted the importance of collaboration among the government, industry associations, and businesses to expand market access for IKM. Their involvement in major industrial supply chains is expected to improve product quality, production capacity, workforce skills, and their ability to meet industry standards and specifications.

To support this goal, the Ministry of Industry, through its Directorate General of Small, Medium and Miscellaneous Industries (IKMA), held a partnership facilitation program connecting metal-based IKM with large manufacturers in West Java on July 29–30, 2026.

The initiative is part of the ministry’s efforts to accelerate the integration of metal-based IKM into major industrial supply chains. The IKMA Directorate General worked with the Karawang Engineering Entrepreneurs Association (APEK) to prepare potential IKM and facilitate direct meetings with prospective large-scale industrial partners.

West Java was selected as a strategic location because it is one of Indonesia’s largest manufacturing hubs. The presence of numerous national and multinational manufacturers creates diverse supply-chain needs, ranging from raw materials and supporting components to industrial services.

Beyond opportunities in West Java, metal-based IKM also have the potential to establish partnerships with major manufacturers in other regions, particularly in the medical equipment and machinery components sectors. These opportunities are expected to expand market access and encourage IKM to diversify their products.

Director General of Small, Medium and Miscellaneous Industries, Reni Yanita, said metal-based IKM have growing opportunities to support industrial needs. Their role is not limited to supplying components, but can also expand into maintenance, repair, and engineering services for machinery and production equipment used by large manufacturers.

“This business-matching initiative is an effort to connect IKM with large manufacturers and build mutually beneficial partnerships. Through direct discussions and exploration of business opportunities, IKM can better understand industry needs, improve their business readiness, and open opportunities to become suppliers for large manufacturers,” Reni said.

Reni further expressed hope that the meetings would go beyond business matching and lead to concrete, sustainable commercial partnerships.

“We hope this initiative will generate tangible and sustainable partnerships that can further strengthen Indonesia’s national industrial ecosystem,” she said.