Small and Medium Enterprises (SMEs), and Cooperatives have a big potential for improving people‘s lives. It has been demonstrated that SMEs and Cooperatives, contribute a major share in the social and economic life of most Indonesian people.
The contribution of SMEs in 2003 was 56.7% of the total national GDP. This was broken down into 41.1% and 15.6% contribution by micro and small enterprises, and medium enterprises, respectively. Based on 1993 constant prices, the level of SMEs growth in 2003 was 4.6%, which was more than the National GDP, which was recorded at 4.1%. While in the same year, the number of SME’s was 42.4 million units or 99.9% of total economic units, which shows the biggest part was the micro economic sector. SMEs could employ more than 79.0 million people, or 99.5% of total employed, including 70.3 million people in micro and small enterprises, and 8.7 million people in medium enterprises. Based on that data, it can be affirmed that SME’s have a big role in providing employment.
A. TARGET
Cooperatives and SMEs occupy a strategic position in the accelleration of structural changes that increase people’s standard of living. As the media for joint venture activities for producers and consumers, Cooperatives are expected not only to play a role in increasing the bargaining position and efficiency of small producers, but also at the same time improving the condition of the competition in the market through its positive external impact.
Meanwhile, SMEs are taking part in enhancing the quality of the work force, giving significant contribution to economic growth, and evenly spreading income growth. They are also increasing competitiveness and leading the resurgence of the national economy. With these perspectives, the general target of Cooperatives and SMEs for the next five years are:
1.Increasing SMEs productivity to higher growth level than the National growth.
2.Increasing the proportion of small and formal economic units.
3.Increasing the export value of small and medium enterprises’ products through value added growth.
4.To create a functioning system for new entrepreneurs based on science and technology.
5.Improving the cooperative institution and organization qualities correspondent to their identity.
B. TASKS AND FUNCTIONS OF THE MINISTRY OF COOPERATIVES AND SMALL AND MEDIUM ENTERPRISES
Tasks and functions of The Ministry of Cooperatives and Small and Medium Enterprises are stated in Presidential Decreet Nomor 09 Tahun 2005 about the Position, Task, Function, Organization Structure, and Duties of The Ministry of Cooperatives and Small and Medium Enterprises article 94 and 95, which are: assisting the President in formulating regulations and the coordination concerning cooperatives and small and medium enterprise. In executing the task, The Ministry of Cooperatives and Small and Medium Enterprises performs the following functions:
1.Formulate national regulations for cooperatives and small and medium enterprise.
2.Coordinate the implementation of regulations about cooperatives and small and medium enterprises.
3.Manage national property under its responsibility.
4.Supervise the implementation of its tasks.
5.Report evaluation results, suggestions, and other considerations about the tasks and functions to the President.
C. VISION OF THE MINISTRY OF COOPERATIVES AND SMALL AND MEDIUM ENTERPRISES
According to Peraturan Presiden Republik Indonesia Nomor 09/M/2005 dated January 31, 2005, The Ministry of Cooperatives and Small and Medium Enterprises is a government execution unit that has the obligated to assist the President to coordinate regulation formulations and its implementation for Cooperatives and SMEs in Indonesia. The Ministry of Cooperatives and SME tasks are to formulate regulation and coordinate planning, implementation, supervision, and controlling empowerment of cooperatives and SMEs in Indonesia.
Based on its position, tasks, and functions, The Ministry of Cooperatives and Small and Medium Enterprises has stated its vision, as follows.
To become a Credible and Effective Government Institution to create dynamic empowerment of Cooperatives and Small and Medium Enterprises in order to increase their productivity, competitiveness, and independence.
D. MISSION OF THE MINISTRY OF COOPERATIVES AND SMALL AND MEDIUM ENTERPRISES
The Mission of The Ministry of Cooperatives and Small and Medium Enterprises is:
To fulfill a real contribution to national development through the formulation of national policy, coordination of planning, implementation and regulation for the empowerment of Cooperatives and SMEs, and increasing the synergy and active role of producers and the business world in order to enhance productivity, competitiveness and independence of Cooperatives and SMEs systematically, continuously in a nationally integrated manner.
E. OBJECTIVES OF THE MINISTRY OF COOPERATIVES AND SMALL AND MEDIUM ENTERPRISES
The general objective of The Ministry of Cooperatives, Small and Medium Enterprises is to develop Small and Medium Enterprises and Cooperative (SMEsCO) as a major player in the competitive national economy. For 2005-2009, the objectives are formulated as follows:
1.Create a stimulating and dynamic condition, and facilitate the growth and improvement of 70,000(seventy thousand) qualified cooperative units and 6,000,000 (six million) new SME units.
2.Establish a conducive business environment for the improvement of Cooperatives and SMEs in all government levels.
3.Increase productivity, competitiveness, and independence of Cooperatives and SMEs in local and international markets.
4.Developing synergy with the business to empower Cooperatives and SMEs.
5.Creating qualified, fast, precise, transparent, and accountable public services.
F. SMEsCO's PRODUCT PROMOTION DEVELOPMENT PROGRAM
This program aims to increase the market share through SMEsCO's product promotion. It consists of the following regulations and activities:
1.Develop SMEsCO's superior product promotion.
2.Develop and facilitate a product-marketing network through exhibitions, business summits, trade missions, etc.
3.Facilitate SMEsCO's product promotion in the mass media.
4.Develop an information and promotion system for new entrepreneurs.
5.Identify and analyze market potential for SMEsCO's products in domestic and international markets.
6.Identify and facilitate SMEsCO's product promotion, that have a good prospect in the international markets.
7.Implement the planning, facilitation, supervision, and evaluation of the execution of SMEsCO's product promotion, etc.