17
D. Micro, Small and Medium Enterprises UMKM
The definition of UMKM varies according to the ministry and institution concerned, and the common definition is not come out yet. But, BPS definition is
generally used now days basing upon the number of employee as shown in Table 6. Statistical yearbook of Indonesia, 2004. p.252
Table 7 Classification of micro, small and medium enterprises UMKM
Industry Category BPS Technical Note
Employee BPS Parameter 1 Micro Industry
HouseholdCottage Industry 1 to 4 employees
2 Small Industry Small Scale Manufacturing
5 to 19 employees 3 Medium Industry
Medium Scale Manufacturing 20 to 99 employees
4 Large Big Industry Large Scale Manufacturing
more than 100 employees
Source: BPS 2004 Beside of BPS’s definition, MOI has own category expressing the scale of
industry into three categories i.e., small industry, medium industry and big industry. According to MOI, the definition is depending on the amount of asset
excluding building and land. •
Small industry : up to 200 million Rupiah
• Medium industry
: more than 200 million Rupiah up to 10,000 million Rupiah
• Big industry
: more than 10,000 million Rupiah According to Ministry of Cooperation and SME, MSMEs
1
are very important, not only for economic growth and job creation, but also for poverty
alleviation. MSMEs are also very strategic in term of their characteristics Soetrisno, 2005.
• 99 or 42.4 million units of establishment in Indonesia are MSME.
• 99.5 of total manpower contributed by MSME.
• 57 of GDP contributed by MSME.
• 19 of total export is from MSME.
• Contribution to national growth is 2-4.
1
MSME: “Micro, Small, and Medium Enterprise” used by Ministry Cooperation and SME
18 Table 8 Productivity per unit in 2003
Unit: Million Rp.
Sector Small
Medium Big
Total 1
Agriculture 10.24
15,394.11 232,691.10
248,095.45 2
Mining Quarrying 41.79
3,200.17 354,068.22
357,310.18 3
Manufacturing Industry 27.39
7,384.56 471,573.48
478,985.43 4
Electric, Gas, Water 19.77
2,505.32 416,812.14
419,337.23 5
Construction 276.39
2,454.92 167,567.91
170,299.22 6
Trade, Hotel Restaurant 26.02
2,865.52 26,230.07
29,121.61 7
Transportation Communication 13.33
8,174.38 245,169.51
253,357.22 8
Finance, Leasing Consultant 705.58
8,709.61 143,693.02
153,108.21 9
Other Service Sector 22.38
1,512.73 321,192.47
322,727.58 Total
1,142.89 52,201.32
2,378,997.92 2,432,342.13
Source: Suetrisno 2005 It also added that poverty eradication has strong linkages with MSME
development. If every unit of MSME can be facilitated and empowered to create at least one person of job opportunities or additional new enterprise, it will create
40 millions new job opportunities. For example, problems of MSME in general; 1. Lack of access to productive resources, particularly financial
2. Business environment that creates high cost economy for MSME 3. Limited internal capabilities of MSME, including technological aspect,
management and entrepreneurship 4. Lack of market access and more tight and unfair competition
5. Supporting institutions which are not well developed Table 9 Productivity per worker
Unit: Million Rp.
Sector Small
Medium Big
1 Agriculture 6.82
34.16 343.37
2 Mining Quarrying 26.45
25.15 6,629.14
3 Manufacturing Industry 9.61
15.98 1,303.86
4 Electric, Gas, Water 28.45
27.25 3,862.99
5 Construction 66.13
37.46 2,557.38
6 Trade, Hotel Restaurant 13.63
42.01 384.38
7 Transportation Communication 10.60
78.70 2,368.66
8 Finance, Leasing Consultant 159.43
196.44 3,231.69
9 Other Service Sector 15.02
10.94 2,324.74
Source: Suetrisno 2005
19
Supporting Industry
Related Industry
Core Cluster Tapioca Industry
Cassava Producer
Carpenter Blacksmith
Local Manufacturer
Cassava Producer
Cassava Producer
E. Cluster and Linkage
Kategori