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Govt Encourages MSMEs to Use the Right Production Technology

The Jakarta Globe
November 14, 2025 | 12:02 pm
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Arif Rahman, the secretary at the MSME Ministry, visits a machinery workshop in Malang on Nov. 13, 2025. (Photo Courtesy of MSME Ministry)
Arif Rahman, the secretary at the MSME Ministry, visits a machinery workshop in Malang on Nov. 13, 2025. (Photo Courtesy of MSME Ministry)

Malang. The government is encouraging micro, small, and medium enterprises (MSMEs) to use the appropriate technology to become more competitive in the market.

"If MSMEs wish to enter mass production, economies of scale must be achieved to reduce production costs. One way is to use appropriate technology-based tools to increase production capacity," Arif Rahman Hakim, the secretary of the MSME Ministry, said when visiting the Metro Mesin machinery workshop in Malang on Thursday.

According to Arif, appropriate technology is not just modern machines or tools, but innovative solutions designed to meet community needs and business scale. For instance, many home industries in the agricultural sector that previously only produced one to three products per day, now able to produce hundreds of units after implementing simple yet efficient technology.

"With the right tools, production can significantly increase. The price per product becomes more efficient. This shows how the appropriate technology is key to enabling MSMEs to advance and increase their competitiveness," he said.

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By 2025, the MSME Ministry -- via the non-physical special allocation fund (DAK Non Fisik) -- in partnership with the East Java Government, will help connect the local MSMEs to the industrial supply chain.

The program includes training for 4,649 participants, mentoring by 198 assistants, and business incubation for 75 selected tenants. This step aims to expand market access, increase production capacity, and equip MSMEs with the latest production knowledge and the use of digital technology.

"This connection is expected to strengthen the local supply chain, reduce dependence on external sources, and ultimately increase regional economic resilience," Arif said.

This program focuses on improving product quality and production efficiency, so that MSMEs can meet domestic and international market standards.

Metro Mesin owner Hadi Apriliawan said that the advantage of appropriate technology lies in its ability to adapt to user needs.

"The advantage is that it can be tailored to customer needs. For example, with the implementation of the Internet of Things [IoT], production processes are faster and output increases," Hadi said.

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