Yayasan Dharma Bhakti Astra (YDBA) together with the Ministry of Industry (Kemenperin) and the Indonesian Chamber of Commerce and Industry (Kadin) focus on carrying out guidance through increasing the Domestic Component Level (TKDN) and Supply Chain involving Small and Medium Industries (SMEs) in Indonesia.

The supply chain development programme involves SMEs and tier 1 PT Astra Honda Motor (PT AHM), one of which is PT Astra Komponen Indonesia (PT ASKI). This collaboration, which has been carried out since 2 years ago, is expected to be a solution for large companies that are not only concerned about product localisation, but also the development of IKM both in increasing competence and expanding the IKM market.

Since November 2022, 39 SMEs have been involved in this supply chain collaboration. The resulting transaction value reached IDR 110 billion or 105% of the set target of IDR 105 billion. It is not only the transaction value that has a positive impact on the SMEs involved, but also the improvement of SME competence. In this collaboration, the SMEs received various coaching programmes, such as Training & Assistance on Ringkas, Rapi, Resik, Rawat, Rajin (5R) & Environmental Health and Safety (LK3), Measuring Instruments & Process Abnormality, Cost Calculation, Human Resources Development (HRD), Market Facilitation, ISO 9001 Quality Management, Financial Management. The SMEs also have the opportunity to get access to financing facilitated by Astra's financing institutions, namely PT Surya Arta Nusantara Finance (SANF) and PT Astra Mitra Ventur (Astra Ventura).

To see firsthand the progress of the supply chain collaboration, last week, YDBA, PT AHM, the Indonesian Ministry of Industry and Kadin Indonesia paid a direct visit to the SMEs involved in this collaboration programme. The IKM is PT Arkha Industries Indonesia which supplies its products to PT AHM's tier 1, PT Astra Komponen Indonesia (PT ASKI).

Attending the visit were YDBA Chairman Rahmat Samulo, Director of Small and Medium Industries of Metal, Machinery, Electronics and Transport Equipment of the Indonesian Ministry of Industry Dini Hanggandari, Vice Chairman of the Standing Committee of Small and Medium Industries of Transport Equipment of Kadin Indonesia Eric Indra Kurniawan, Quality Assurance Head of PT AHM Setyo Budi Anang Yuliarto and Purchasing and Administration Division Head of PT ASKI Calvin Mayrs.

During the visit, Rahmat Samulo expressed his appreciation for the supply chain programme involving YDBA, PT AHM, the Indonesian Ministry of Industry and Kadin Indonesia. Samulo assessed that this collaboration can be duplicated by various stakeholders who are concerned about SMEs. Therefore, Astra through YDBA will continue to expand this collaboration by inviting stakeholders to be involved in developing SMEs through the supply chain programme.

Dini Hanggandari said that this collaboration not only supports the market certainty of SMEs, because SMEs are directly linked & matched with their foster fathers, but also reduces imports through strengthening local products produced by Indonesian SMEs.

Eric Indra Kurniawan fully supports this collaboration programme, especially since all parties are committed to implementing supply chain collaboration. Eric admitted that this programme is one of the flagship programmes at Kadin, especially in the Standing Committee for Small and Medium Industry of Transport Equipment.

On the same occasion, Setyo Budi Anang Yuliarto said that this supply chain collaboration has created an ecosystem that supports the competence and expansion of SMEs, so this collaboration must be improved by presenting more stakeholders who have the same commitment and vision in developing SMEs in Indonesia.

Calvin Mayrs admitted that PT ASKI is very supportive of the IKM development programme, especially this supply chain programme. With good quality and timely delivery from IKM, it strengthens PT ASKI's commitment to continue to be involved in the supply chain programme.