JAKARTA – PT Pupuk Indonesia (Persero) supports the development of national Micro, Small and Medium Enterprises (MSMEs) through the implementation of the UMKM Digital Market (PaDi) Expo 2023. The expo activities are carried out in a hybrid manner, namely offline at the Sarinah Building Jakarta and online on the PaDi UMKM platform , 14-28 June 2023.

SVP Corporate Secretary of Pupuk Indonesia, Wijaya Laksana said that PaDi UMKM is a digital ecosystem for the development of national MSMEs to upgrade and improve the quality and competitiveness of their respective products. This digital ecosystem also aims to create business transactions between state-owned companies and MSME players.

According to Wijaya, Pupuk Indonesia is one of the BUMNs that contributes to the development of national MSMEs through the absorption of domestic products or MSMEs themselves. Based on data from the Ministry of BUMN, Pupuk Indonesia's transactions with PaDi UMKM were recorded at IDR 438 billion or the 3rd largest in 2022.

"At the PaDi UMKM Expo 2022, Pupuk Indonesia was ranked 3rd for the category A BUMN Company classification for the volume of absorption or purchase of domestic products or MSMEs through PaDi UMKM. This also indicates that the Pupuk Indonesia Group supports the development of national MSME players," said Wijaya.

Apart from being an effort to develop national MSMEs, it is a collaborative program between the Ministry of BUMN and BUMN companies with large transaction values.

Secretary to the Ministry of BUMN, Rabin Hattari said that the transaction value for BUMN domestic product purchases through the digital market is IDR 28 trillion out of a total transaction of IDR 550 trillion in 2022.

"Of the realized spending value of IDR 550 trillion in 2022, around IDR 28 trillion is MSME products purchased from the PaDi UMKM platform. This proves that our SOEs are actively buying MSME products," said Rabin.

Seeing the high data on actual spending on state-owned domestic products, Rabin appreciated the steps taken by PT Pupuk Indonesia (Persero) with holding PT Perkebunan Nusantara III in holding the PaDi UMKM Expo in 2023.

Expert Staff for Finance and MSME Development at the Ministry of BUMN, Loto Srinaita Ginting said that the PaDi UMKM Expo was the Government's effort to develop national MSME actors by providing new market access. The reason is, until now there have been 95 BUMN companies and their subsidiaries that have implemented PaDi UMKM with approximately 8,000 buyers who have the authority to make shopping transactions on the PaDi UMKM marketplace.

"We also hope that this will bring our optimism, including MSMEs, that SOEs are ready to absorb MSME products according to their needs. We also continue to encourage the use of PaDi UMKM by retail from the community, especially those from employees of BUMN and the Ministry of BUMN," said Loto.

Loto reported that the implementation of the PaDi UMKM Expo had succeeded in developing and expanding the market for national MSME players. He gave an example, such as the implementation of the first expo in 2021, there were 1,144 transactions worth IDR 1.6 billion. At the second expo, the transaction value increased to 2,442 transactions with a value of IDR 12.5 billion. Loto further said that the transaction value increased again at the third expo in 2022, where there were 4,774 transactions with a value of IDR 15.8 billion.

"The 4th PaDi UMKM was attended by 201 UMKM offline from the 597 participating UMKM and we hope that the total transactions and turnover at the PaDI UMKM Expo this time will increase. Because, the 4th PaDi UMKM concept carries the department store concept in its offline implementation. The PaDi UMKM Expo is expected to be a solution to complaints from UMKM regarding the limited marketing of MSME products," added Loto.

It can be seen, the PaDi UMKM Expo 2023 was attended by 597 MSMEs which were registered as fostered partners from the Ministry of Cooperatives and SMEs, the Indonesian Young Entrepreneurs Association (HIPMI), the Indonesian Women Entrepreneurs Association (IWAPI), the National Crafts Council (Dekranas), Bhayangkari, Nahdlatul Ulama (NU), Muhammadiyah, including Rumah BUMN assisted by Pupuk Indonesia.

The MSME business sector involved is MSME in the business sector of office stationery, electronic goods, souvenirs and merchandise, catering and snacks, household equipment, construction materials, fashion, and various other types of services. In addition to exhibitions, there are also supporting events such as talk shows, fun runs, entertainment, BUMN band performances, including the 2022 PaDi UMKM Award.

The PaDi UMKM program within Pupuk Indonesia is carried out jointly with a number of subsidiary companies. Starting from Pupuk Kaltim, Petrokimia Gresik, Pupuk Kujang Cikampek, Pusri Palembang, Pupuk Iskandar Muda, Rekayasa Industri (Rekind).