The East Java Chamber of Commerce and Industry (Kadin) is collaborating with the Indonesian Forwarder Logistics Association (ALFI) to assist Micro, Small and Medium Enterprises (MSMEs) to penetrate the export market.

The commitment was agreed upon by the Chairman of East Java Chamber of Commerce and Industry Adik Dwi Putranto, accompanied by the Deputy Chairman for Empowerment of Associations and Associations of East Java Chamber of Commerce and Industry Adi Prawito, with the Chairman of East Java ALFI Sebastian Wibisono and a number of East Java ALFI administrators during an audience.

Chairman of Kadin Jatim Adik Dwi Putranto revealed that the contribution of MSMEs to the East Java economy is indeed quite large, reaching around 58 per cent, and the contribution continues to increase from year to year.

Data from the East Java Provincial Government shows that in 2022 the contribution of MSMEs to the East Java economy will reach 58.36 per cent, a significant increase compared to 2020 of 57.25 per cent and 2021 of 57.71 per cent.

Meanwhile, labour absorption is also quite large, reaching 96.3 per cent.

"In 2023, the contribution will be even greater along with the number of MSMEs that have sprung up and are upgrading. This means that the assistance provided by ALFI and Kadin Jatim is a strategic effort in realising the government's target of creating new export MSMEs," Adik said in a statement received on Sunday (11/2/2024).

Chairman of ALFI East Java, Sebastian Wibisono, said the collaboration was triggered by the small number of MSMEs that understand how to carry out export procedures, so that the number of MSMEs that export independently is still around 50 per cent only, the rest export through second hands.

"We agree to carry out future cooperation or collaboration related to the logistics business, especially in East Java. Also about empowering MSMEs, helping to provide assistance to MSMEs for export logistics and domestic logistics activities, related to customs clearance procedures, document clearance and so on," he said.

In line with Adik Dwi Putranto, Sebastian said that MSMEs have a major contribution to Indonesia's economic resilience. Thus, this sector must continue to receive support so that its contribution to the Indonesian economy can be even greater. Therefore, ALFI and Kadin East Java will continue to explore their potential by conducting mapping.

"What is the potential and what is the most appropriate assistance scheme, so that in the future it will continue to run well. Because 60 per cent of ALFI members engaged in logistics are also MSMEs," he said.