1 July 2016

Indonesian SMEs could get a boost from 12th WIEF

Disruptive technology can complement conventional, labour-intensive operations, said speakers at a public dialogue, Seizing the Benefits of Disruptive Technology for Manufacturers in Increasing Labor Productivity organised by The Habibie Center in collaboration with the Ministry of Finance of Indonesia and the World Islamic Economic Forum Foundation held ahead of the 12th World Islamic Economic Forum (WIEF).

Speaking at the event, Senior Economic Researcher of LIPI, the Indonesian Institute of Sciences Dr Zamroni Salim said, “Disruptive technology does not always oppose conventional operations with massive labour forces. Manufacturing operations such as big data and the Internet of Things (IoT) that help analyse details of operations, real time data from suppliers’ inventory, shipments in transit; to downstream customer demand does complement conventional operations.”

Disruptive technologies can in fact serve as an alternative for Indonesia and other ASEAN countries to widen profit margins and lower costs in manufacturing, and potentially create US$25 to US$45 billion in annual ASEAN economic impacts by 2030, the dialogue concluded. This is also in line with Indonesia’s industrial development master plan (RIPIN) of 2015 to 2035, which targets to grow the contribution of non-oil and gas industries as part of the economy.

ASEAN countries, including Indonesia, have the opportunity to attract more cost-conscious global manufacturers and embed themselves deeper into the global supply-chain, especially since China's shift from an export-driven economy to a consumption-driven model has caused wages to rise in the country.

Special Staff of Vice President of The Republic of Indonesia for Economic and Finance Wijayanto Samirin says, “Manufacturers in Indonesia and other ASEAN countries need to access these disruptive innovations and technologies in a cross-border global partnership. Cooperation between large and small companies is needed to create global competitiveness.”

In Indonesia, where the majority of its workforce is employed by small and medium enterprises (SMEs); digital disruption could offer many small businesses opportunities that would have been beyond their reach before. Indonesian SMEs have the opportunity of going global with the help of technology. Identification of the right technologies and relevant experiences are therefore key in making SMEs in Indonesia global ready. Such opportunities are available through networking platforms, or global business-to-business networking events such as the upcoming 12th WIEF at the   Jakarta Convention Centre from August 2 to 4, 2016.

The 12th WIEF is themed Decentralising Growth, Empowering Future Business, to promote inclusive growth that will benefits the business ecosystem and aim bring together Muslim and non-Muslim communities through the common language of business. Previous forums were held in Malaysia, Kazakhstan, Indonesia, Kuwait, Pakistan, the UK and the UAE.

Day 1 (August 2) will feature a ministerial panel discussing the AEC Blueprint 2025 (12:30pm-4:00pm). The panel will delve into issues of economic integration between ASEAN member states and what the region can achieve by 2025. Another session to look out for is the Global Economic Outlook (4:15pm-5:45pm) which will discuss consumer-driven frameworks, a new trend that’s fuelled by peer-to-peer networks and DIY platforms.

Highlights for August 3 include the CEO Panel (10:30am to 12:00pm) titled, Disruptive Technology and the Rise of New Industries, will discuss the unprecedented growth of advanced robotics, artificial intelligence and Internet technologies that dramatically change the way business is conducted. It will also highlight how companies can stay ahead of the curve and the future prospects of modern businesses. Happening simultaneously is a Masterclass, Achieving Synergies between Corporations and Startups, which will highlight the increasing collaborations between corporations and startups. Another Masterclass, Innovation in Education: Preparing for the Next 10 Years (4:15pm to 5:45pm) will focus on how to improve the education system to prepare for future demands in certain business industries.

A two-day MOCAfest, a creative arts festival that celebrates the creative and cultural sectors of the global economy and their roles in empowering young people economically, begins on August 2. Envisioned to be a marketplace of creative arts (MOCA), the event will brings together artists and audiences to showcase performances, masterclasses, dialogues and networking sessions.

On day 3, there will be a panel discussion focusing on restructuring SMEs and improving credit access (9am to 10:30am) that will touch on the various credit access options available to SMEs and discuss conducive structures for SMEs to receive sustainable financing.


View the agenda