President Joko Widodo: KITE IKM Reduces Production Costs by 25 Percent

Boyolali, 31/1/2017 MoF – The President Joko Widodo hit the gong, marking the launch of Export Purposed Import Facility (KITE) for Small and Medium Enterprises (IKM/SMEs) in Tumang Village, Boyolali, Central Java on Monday (30/01/2017).

In his speech, the President emphasized that the competition among businesses participants, between countries, is getting harder due to the global economic weakening. The President hoped the government to support all the SMEs.

“It is the government’s duty to take care of the SMEs and increase their competitiveness,” he affirmed.

He also expects the production costs will be reduced as the big enterprises have been facilitated with Bonded Logistics Centers.

KITE IKM, the President continued, will reduce production costs up to 25 percent. “First, SMEs can buy raw material directly. Next, import duties and taxes are exempted. If SMEs use the facility, the level of competitiveness will up,” he said.

On the same occasion, Central Java Governor Ganjar Pranowo expects the KITE IKM will help IKM, particularly in terms of mentoring. “Hopefully, SMEs will be encouraged and growing bigger to build Indonesia,” he concluded. (agt/nr)

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