Material Center Becomes Local Automotive Industry Growth Solution

VIVA – The Ministry of Industry (Kemenperin) continues to commit and collaborate with many parties to fulfill the availability of raw materials at competitive prices to help the growth of local Small and Medium Industry (IKM) centers in competitiveness, especially in automotive industry. 

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Director General of Small, Medium, and Miscellaneous Industries (IKMA), Ministry of Industry, Reni Yanita, said that material centers play an important role in optimizing the supply of raw materials for IKM.

"Material centers play an important role in optimizing the supply of raw materials for IKM, as well as helping to increase the competitiveness of IKM. So, they can enter the national industrial supply chain, while expanding employment opportunities for people around the centers," Reni Yanita remarked on the launch of the development of material centers in Majalengka, West Java, on November 17, 2022.

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Ilustrasi industri otomotif.

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• Dokumentasi Kemenperin.

The Ministry of Industry through IKMA initiated the formation of a material center as a center for procuring raw materials for Majalengka and surrounding IKM (Karawang, Cikarang, Bekasi).

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"Previously, in 2018, the Directorate General of IKMA together with the Tegal Regency Government had also operated a material center located in LIK (Small Industry Environment) Takaru, Tegal Regency, Central Java, to provide metal raw materials for the automotive component of IKM," Reni Yanita remarked.

Seeing the rapid development of the material center in Tegal, in 2022, the Directorate General of IKMA also collaborated with the Majalengka Regency Industry and Trade Office to develop a material center at the Majalengka Small and Medium Industry Center (SIKIM).

According to Reni, this collaboration is one of the implementations of the memorandum of understanding signed by the Minister of Industry and the Chairman of KADIN on November 1, 2022, related to Link and Match in the framework of IKM partnerships with large industries.

"The partnership also starts in the procurement of raw materials needed by IKM," Reni Yanita remarked.

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Meanwhile, the Majalengka IKM material center being developed is currently located in Block A of the SIKIM Majalengka Area on Jalan Lingkar Utara, Cikasarung, Majalengka, Majalengka Regency.