IPB Workshop Reveals the Importance of MSMEs Involvement in Global Value Chains

Currently, there is no doubt about the importance of smallholder involvement and micro, small and medium enterprises (MSMEs) in what are called Global Value Chains (GVCs). Involvement in GVCs promotes the prosperity of MSMEs and farmers. The problem is that smallholders and MSMEs have a number of weaknesses that make it difficult for them to integrate into GVCs. Among others the lack of capital to export and the inability to connect with potential buyers abroad. Therefore, government support is needed to encourage smallholder and MSME involvement in GVCs.

This was revealed by the Director of Commerce, Commodities and Intellectual Property, Ministry of Foreign Affairs, Tri Purnajaya in Workshop on "Optimization of G20: Integration of Agricultural Sector in Global Value Chains" at Bogor Agriculture University (IPB), Dramaga 19/4. "It is time for all agricultural stakeholders and UMKM actors to think globally and act locally, meaning we should be able to take advantage of global opportunities by creating products needed by the global market," Tri said.

Dr. Mukhamad Najib, Vice Dean for Resources, Cooperation and Development of Faculty of Economics and Management (FEM) IPB said our current nationalism articulation is no longer on accepting or rejecting imports, but on how to take advantage of global opportunities by strengthening our production base. "If our production basic is strong, foreign products will inherently irrelevant in the domestic market. Moreover, with a strong production basic, our products can flood the international markets," he said.

In the meantime, Dr. Sahara, Head of the Department of Economics FEM IPB said Indonesia has an opportunity to be involved in Global Value Chains, especially in the agricultural sector. The results of research conducted by the Department of Economics FEM IPB shows that international trade of Indonesian agricultural products is still quite good. This means that Indonesian agricultural products are still competitive enough in the international market. However, he said the involvement of smallholder farmers in GVCs has a number of challenges. "Involvement in GVCs requires standards that often difficult to meet by smallholder farmers such as food safety, environmental friendly, animal welfare and others," said Sahara.

These series of conditions that underlie FEM IPB to hold this event by cooperating with the Directorate General of Multilateral Cooperation, Ministry of Foreign Affairs of the Republic of Indonesia. The workshop presented resource persons from both institutions: Deputy Director for UN and Non UN Bodies Ministry of Trade, Ayu Wulan Sagita and Supply Chain Management Specialist from FEM IPB, Eko Ruddy Cahyadi. (TK)

Published Date : 30-Apr-2018

Resource Person : Dr. Mukhamad Najib

Keyword : IPB Workshop Reveals the Importance of MSMEs Involvement in Global Value Chains