Jakarta Globe: The Internet has revolutionized the way we do businesses. In Jakarta, for example, gone are the days we have to haggle over prices for motorbike taxi drivers, known locally as ojek. With a single click of our gadgets, an ojek can arrive at our doorsteps — and with a fresh hairnet and mask.
Online shops are also growing like mushrooms during the rainy season these days. Each of them offers unique merchandise at competitive prices. Some even offer cash-on-delivery payment options, making it much easier and more convenient for us to shop.
Seeing this up-and-coming trend, the Smesco Indonesia Company (Smesco), a public service agency under the Ministry of Cooperatives and SMEs, is also upgrading.
The agency, which is aimed at developing and promoting Indonesia's SMEs, currently manages over 1,800 small-to-medium enterprises from all over the archipelago. Currently, the agency actively offers e-commerce trainings and facilities to its members.
At a recent press conference, the Jakarta Globe caught up with Atajudin Nur, who heads the business division at the ministry's SMEs marketing services agency.
Atajudin, who has been in charge of Smesco for about three years, discussed the necessity of Internet technology for today's businesses, as well as the government's commitment and support to grow Indonesia's small-to-medium businesses.
What is the role of Smesco in developing and promoting Indonesia's small-to-medium enterprises?
We offer expansive halls to display the products of our members at our office at the SME Tower [on Jakarta's Jalan Gatot Subroto]. Besides that, we also provide trainings and workshops to develop the businesses of our members. We also introduce international buyers to our members and do some business-matching sessions. All of our facilities and trainings can be used without additional charges for our members.
How can you become a member?
Just come to our office and bring samples of your products. We have a curatorial board that determines whether your products would be suitable for Smesco.
What kind of products does Smesco usually look for?
We look for products that are unique and cannot be found in other countries, so that the international guests visiting Smesco will be interested to buy and bring them to their home country. The products should also be well made with high-quality materials.
How many visitors do you usually have at Smesco?
Well, that depends. On weekends, we can get as many as 4,000 visitors per day. And most visiting state-guests are usually scheduled to visit Smesco.
How does the Internet era affect Smesco's members?
Internet is getting very important these days. As we all know, Internet accelerates the spread of information, facilitates communication and creates new business opportunities. According to our survey, SMEs that use the Internet, in their promotion or trade, grow twice as fast as those that don't.
How many Smesco members are Internet-savvy?
Most of them aren't. And that's why we provide regular trainings on e-commerce, twice a month, for all our member. Sometimes, we invite representatives from big [Internet] companies, such as Google and Facebook to give tutorials to our members.
Do you also work together with local marketplaces to promote the products of your members?
Yes, we do. Currently, we work together with Blibli.com and Bhinneka.com to showcase the products of our members. And we also have our own marketplace at Smescotrade.com, which was launched mid last year.
Is the marketplace reserved for the members of Smesco? What kind of products does it offer?
Yes, it's only for our members. It offers all the products, which are currently being displayed at the SME Tower, including fashion, furniture and handicrafts. Our website also supports credit card and e-wallet payments.
Fantastic. How does it go so far?
It's been great. More than 1,000 people visit our marketplace each day. About 70 percent of them are locals and 30 percent of them are people living abroad. Our members also report an increase of sales, some as much as threefold.
How much sales is the Smesco targetting this year?
Rp 50 billion ($3.5 million), which is a 10 percent increase from last year. So far, [our actual sales] have always exceeded our targets.
What do you think of the upcoming integration of Association of Southeast Asian Nations markets through the Asean Economic Community ? Would it pose a threat to Indonesia's SMEs?
It would definitely be a threat to local SMEs that don't continuously improve themselves. And that's why we've been aggressively giving capacity-building workshops to our members to improve their products' quality, design and packaging. We've also been facilitating the registration of the intellectual property [IP] rights of our members since January this year.
In your opinion, what are the main weaknesses of Indonesia's SMEs?
Most of them do business [only] to fulfill their daily needs. Once they have achieved [that goal], they’ll become complacent and don't want to grow any further. If they persist with such a mindset, sooner or later, they will fall behind their competitors.
What would you suggest to would-be entrepreneurs out there?
Do your research. Study what’s currently needed by the market and then create your product as the solution. If you do it the other way around, it would take a long time for you to succeed in the business world.
And which business field is the most lucrative right now?
Many international buyers are eyeing our agro industry. They're interested in our basil, celery and strawberries.
By: Sylviana Hamdani | on 4:56 PM September 06, 2015
Category: Life & Style, Community
