Productivity of Oil Palm and Rubber Farmers at the Dharmasraya Metal IKM Center

The Ministry of Industry supports the construction of metal small and medium industrial centers (IKM) in Dharmasraya Regency, West Sumatra. The development of the metal IKM center is believed to be able to spur the productivity of the local community as well as contribute to the regional and national economy.

"The metal IKM center in Dharmasraya Regency is an IKM center built through the Special Allocation Fund (DAK) budget for the 2018-2019 IKM sector. We hope that the construction of this metal IKM center can improve the quality of products produced by IKM players there, "said Industry Minister Agus Gumiwang Kartasasmita at the inauguration of the Dharmasraya Regency Metal IKM Center, whose ceremony was held virtually in Jakarta, Thursday (6/8).

The Minister of Industry explained that the IKM center is a group of IKM in one location or place that uses raw materials, produces similar products, and carries out the same production process. "Grouping the IKM into one center will certainly facilitate guidance to further improve the ability of our IKM," he said.

Therefore, in an effort to strengthen the role of the IKM centers, a design and technology development center is needed accompanied by a center for human resource development (SDM). "This is because technology and human resources are two important components that must be synergized to produce quality products," he added.

Agus said that his party is determined to continue providing guidance to IKM players. Because, with their large numbers, they are the spearhead of the manufacturing industry. Moreover, the IKM sector will not be separated from parts of the production process or large-scale industrial supply chains.

"Of course, we will encourage the metal IKM center in Dharmasraya to support the added value of natural resources and industrial products there, one of which has been proven through the manufacture of a head tractor. We want the metal IKM center in Dharmasraya to be used as best as possible by the local community, "he explained.

Director General of Small, Medium and Miscellaneous Industries (IKMA) Gati Wibawaningsih explained, since 2016-2020, DAK in the IKM sector has been distributed to 285 districts / cities throughout Indonesia. "Dharmasraya Regency is one of 13 Regencies / Cities in West Sumatra Province that has received the DAK budget in order to strengthen and empower IKM centers," he said.

According to Gati, based on the identification that has been done, there are several benefits from the existence of DAK in the IKM sector. For example, making it easier for regions to carry out further coaching at centers that are centralized in one location. Then, increase production capacity through the addition or improvement of facilities and infrastructure needed by IKM centers that cannot be realized by the APBD.

Other benefits include an increase in employment related to capacity building and institutional strengthening of IKM centers, as well as increased product competitiveness through improved packaging and transfer of production technology.

Meanwhile, the Regent of Dharmasraya Sutan Riska Tuanku Kingdom said Dharmasraya Regency is a strategic area because it is traversed by the central Sumatra route. This has great potential in the development of the SME sector and its trade because it is supported by smooth land transportation facilities.

"Dharmasraya Regency has a large area of ​​plantations, rice fields and agriculture, the work of which requires equipment from planting to harvest time. So far, when the agricultural machinery (alsintan) used is damaged or worn out, repairs need to bring in spare parts from outside Dharmasraya, "he explained.

Therefore, the existence of a metal IKM center in Dharmasraya will answer the obstacles faced by farmers and machinery manufacturers who need metal spare parts. In 2019, there were 347 business units based on metal. The existence of a metal IKM center is expected to provide maintenance, repair, and production services for machinery and other metal equipment needed by the Dharmasraya community.

He conveyed, the existence of the IKM center supports the development of the agricultural machinery industry, especially in West Sumatra and its surroundings. "So, those who need metal tools can take advantage of the existence of the Dharmasraya IKM center located in Nagari Gunung Medan, Sitiung District. This activity is also expected to be able to help move the economy after the Covid-19 pandemic, "he said.