Index

 20 February 2007

 
German firms seek local SME partners
Jakarta

To develop partnerships between Indonesian small and medium enterprises and European companies, the Agency for the Assessment and Application of Technology's Business Technology Center (BTC-BPPT) facilitated a gathering Friday for German businesspeople and local SME entrepreneurs.

"Our aim is to create a closer relationship between local SMEs and foreign businesses so that our SMEs will be able to compete on the global market," said BTC-BPPT director Bambang S. Pujantiyo.

The gathering was part of a project called the Indonesian Network for Technology-Industry Matching (INTIM), which is funded by a one-year grant of Rp 3 billion (US$329,670) from the European Union-Small Project Facility Program.

INTIM is a technology-based business network system that provides a database of local SMEs in order to facilitate the matching of the technology needed by local SMEs and that offered by foreign companies interested in building partnerships with them. After being introduced in major cities like Jakarta, Bandung, Surabaya, Malang, Salatiga, Batam and Makassar, INTIM now has some 500 local SMEs taking part in the program.

Representatives of some 40 SMEs attended Friday's gathering. Their businesses operate in areas that include the production of equipment to prevent gasoline evaporation and fire risk at gas stations, the designing of cost-effective contact center services for companies, and the processing of vegetable oil into biofuel.

The Business Development and Technology Transfer Corporation of Schleswig-Holstein (WTSH) was in attendance as the representative of 26 German companies. WTSH functions as a one-stop agency for enterprises engaged in business and innovation activities that wish to expand their operations to Schleswig-Holstein.

The 26 German companies operate in various areas, including marine-aquaculture, energy, electronics, health, IT, manufacturing and agro-industry.

The latest figures from the State Ministry for Cooperatives, and Small and Medium Enterprises reveal that the number of micro, small and medium enterprises nationwide stands at about 45 million, providing jobs for nearly 78 million workers, or 96.8 percent of the national workforce. SMEs contributed 54.2 percent to 2006's GDP of Rp 1.48 trillion.

Bambang said that partnerships in technology, capital enhancement, market access and production-capacity development could improve the quality of local products so as to enable them to meet international standards. In addition, he explained, overseas companies could also reap benefits from intellectual property royalties, profit-sharing and market expansion.

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