With Capital of Hundreds of Thousands, This is the Secret to MSMEs Profiting Hundreds of Millions Entrepreneur – 1 day ago

Jakarta, CNBC Indonesia – Indonesia is the country with the largest Muslim population in the world. This offers great potential for the absorption of sharia-based products for consumers in Indonesia.

Micro, Small and Medium Enterprises (MSMEs) are one of the drivers of the sharia economy in Indonesia. MSMEs make a large contribution to Gross Domestic Product (61.1%), employment (97.1%), and exports (14.4%).

Bank Indonesia is also trying to make the best contribution to continue increasing the role of MSMEs in the economy. One of them is by exhibiting the MSME products they have developed at the Indonesia Sharia Economic Festival (ISEF) 2023, which took place at the Jakarta Convetion Center, Friday (27/10/2023).

One of the MSMEs assisted by BI, for example, Ampyang Jawa Educational Tourism, has succeeded in making a turnover of IDR 600 million per month from selling typical food products from Karanganyar, Central Java. The business started by Alief Danan initially only had capital of IDR 600 thousand.

“Initially the capital was IDR 600 thousand, the employees were just me, my wife and my parents. So it was a family business. Now there are 15 employees,” said Danan when met at one of ISEF’s food stands.

BI-assisted MSMEs, Ampyang Jawa Educational Tourism, at ISEF 2023. (CNBC Indonesia)Photo: MSMEs assisted by BI, Ampyang Jawa Educational Tour, at ISEF 2023. (CNBC Indonesia)
BI-assisted MSMEs, Ampyang Jawa Educational Tourism, at ISEF 2023. (CNBC Indonesia)

Danan admitted that Bank Indonesia contributed a lot to the development of its products. He was involved in various trainings and bazaars held in various cities, so that his business was known to many people.

“Eventually we can earn a turnover of IDR 500-600 million per month,” he said.

Not only in the food sector, BI is also targeting MSME activists in the fashion sector. Elmin Damanik, for example, sells Simalungun woven textiles typical of North Sumatra through the Bah Pison Fashion brand.

He said that the business, which started in 2000, experienced a downturn. Starting with a capital debt of IDR 1 million, he even had to experience the bitter pill of loss until 2007.

“In the past, we just followed what was on the market. After that, we tried market research, it turned out that there was a very rare type of North Sumatran fabric, Hio Simalungan Woven,” he said.

After receiving this inspiration, Elmin’s Simalungun Weaving products became increasingly sought after by consumers. Until 2008, his business began to be officially registered and generated a turnover of IDR 140-160 million per month.

He admitted that joining as a BI-assisted MSME brought his turnover up by 5-10%.

“Here we learn sales systems, including zero waste production. We learn a lot, in the end we process the remaining woven fabric into products such as earrings, prices start at IDR 15,000,” said Elmin.

It is known that a series of sharia-standard MSMEs assisted by BI were present at the 10th ISEF event which was held a week at the Jakarta Convention Center from 25 to 29 October 2023.

Apart from the MSME bazaar, visitors can see the International Modest Fashion Festival (IN2MF) as the largest modest fashion festival which is held with the support of various parties by presenting 178 designers, to the International Halal Chef Competition (IN2HCC) as an international scale chef competition to promote Indonesian halal culinary to the world.

ISEF 2023 also encourages strengthening domestic and international collaboration, including holding the Trade Expo Indonesia (TEI) which is attended by potential buyers from various countries.

[Gambas:Video CNBC]

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