Digital Transformation to Accelerate the Development of Priority SMI Centers

Currently, Indonesia is in the 6th position in the world as an exporter of leather products, footwear, and finished leather goods. With a total domestic per capita consumption of 3.4 pairs in 2017, the Indonesian market has the potential to be filled by local producers, including footwear SMEs and in the future, with high purchasing power, the potential for domestic consumption will also increase. Meanwhile, footwear export performance in 2017 also increased from USD 4.9M from USD 4.6M in 2016. Meanwhile, the contribution of the footwear sector to GDP (Gross Domestic Income) also increased from Rp. 25.8T in 2016 to Rp. 26.4T in 2017.

This great potential is expected to be more globally competitive because it can make a significant contribution to the national economy. For this reason, efforts to develop the leather, footwear and finished leather goods industry need to be continuously improved, one of which is through the development of IKM centers. One of the IKM centers that focus on leather products, footwear, and finished leather goods is the Tanggulangin IKM Center. We understand that center-based development can increase the efficiency and productivity of SMEs, where centers become centers of agglomeration of small and medium-sized business activities, especially makers/producers aimed at accelerating the spread, equity, and improvement of the quality of industrial development in the regions. This activity aims to:

1. Inventory of challenges and obstacles in the digitalization development of Tanggulangin IKM Center
2. Identifying the readiness and support needed for IKM Centers to become a model for acceleratingscalling-up management of the Centers through digital transformation.
3. Identifying the need to improve the readiness of HR managers for IKM Centers to become local and national champions.

The Directorate General of IKMA, Ministry of Industry has carried out a revitalization program for the Tanggulangin IKM center in Sidoarjo, East Java, since 2017 through the APBN and DAK for the Revitalization of the Center. The revitalization is carried out to encourage the growth of the leather, footwear, and finished leather goods industry which is expected to improve the performance of the business ecosystem in the Tanggulangin bag and luggage IKM center. This revitalization program is believed to provide an attraction for tourists who visit the Tanggulangin IKM center.

The Tanggulangin IKM Center development program includes synergies with various stakeholder, rebranding the Tanggulangin IKM Center, to upscalling f the Tanggulangin IKM Center in the form of product quality improvement, business management, digital marketingfacilitation of making marketing tools,and business matchingAs one of the rebranding efforts, rebranding efforts, Kick Off has been carried out digitization of Tanggulangin on November 13, 2020. The digitization was carried out as an effort to increase business opportunities, considering that the leather, footwear, and finished leather goods industry is one of the priority industrial sectors that managed to record a surplus value in international trade.

Maju Industri Indonesia!!!