Metal SMEs Tapped to Strengthen Indonesia’s Manufacturing Sector

RRI.CO.ID, Jakarta – Opportunities for small and medium-sized enterprises (SMEs) in Indonesia’s metal sector to expand their markets remain open, with the Ministry of Industry encouraging Small and Medium Enterprises (SMEs) to join the supply chains of large-scale industries.

The initiative aims to strengthen business partnerships and increase the use of domestically produced goods -- an effort considered crucial for deepening the structure of the national manufacturing industry.

Industry Minister Agus Gumiwang Kartasasmita said SMEs play a strategic role in the economy and in job creation.

“Therefore, strengthening partnerships between SMEs and large industries is a strategic step to improve SME performance while reinforcing the resilience of the national manufacturing sector,” he said in Jakarta, as quoted on the Ministry’s official website on Sunday, August 9, 2026.

Minister Agus noted that the metals sector holds a key position as it supplies components and supporting products for the automotive, heavy equipment, medical devices, construction, and machinery industries.

Participation in vendor development programs can open opportunities for SMEs to increase production capacity and expertise.

“When SMEs can become part of the supply chain for major industries -- whether state-owned enterprises or private companies -- while also participating in vendor development programs, the opportunities to increase production capacity and competencies will be even greater,” he said.

The Ministry is also strengthening collaboration between the government, associations, and industry players to expand market access for SMEs. These partnerships can help SMEs improve product quality, production capacity, human resource competencies, and compliance with industry standards.

The Directorate General of Small, Medium, and Miscellaneous Industries (Ditjen IKMA) implemented this initiative through the “Facilitation of Partnerships Between Metal SMEs and Large Industries in West Java” program on July 29–30.

The program was carried out in collaboration with the Karawang Engineering Entrepreneurs Association (APEK).

West Java was chosen because it is one of Indonesia’s largest manufacturing hubs. The presence of national and multinational companies has created strong demand for raw materials, components, and industrial support services.

Director General of IKMA, Reni Yanita, said the capabilities of metal SMEs extend beyond component production. “Metal SMEs have increasingly broad opportunities to support industrial needs, including as providers of maintenance, repair, and engineering services for various machines and production equipment,” she said.

The program began with visits to metal SMEs in Karawang and Bekasi, allowing potential partners to directly assess production processes, quality, capacity, and readiness to meet industrial needs.

The visits involved PT Perkebunan Nusantara, PT Yogya Presisi Teknikatama Industri, PT Hitachi Construction Machinery Indonesia, and PT Sarandi Karya Nugraha. The Ministry then held a Metal SME Business Matching Event with Large Industries in Karawang on July 30, 2026.

“This forum serves as a platform for dialogue between SME stakeholders and large industries to discuss industrial needs, product specifications, quality standards, and opportunities for cooperation through sustainable business partnerships,” Reni said.

Acting Director of SMEs in the Metal, Machinery, Electronics, and Transportation Equipment Sectors, Budi Setiawan, said the facilitation programs also help SMEs understand market needs and industry standards. The activities expand business networks and open opportunities for long-term collaboration.

A total of 30 SMEs from Karawang and Bekasi participated in the event. Participants have expertise in metal fabrication, machining, component manufacturing, and industrial support services.

“We expect this partnership facilitation initiative to foster sustainable business relationships and further strengthen the involvement of SMEs in the national industrial supply chain,” Budi said. ***