Jakarta, INTI - The Ministry of Industry (Kemenperin) continues to implement policy reforms to ensure ease of access and availability of raw materials and/or auxiliary materials for small and medium enterprises (SMEs). This strategic effort is carried out through the refinement of policies at the Center for Raw and Auxiliary Materials Supply for SMEs, as regulated in Minister of Industry Regulation No. 21 of 2021.
“The policy reforms are carried out continuously to maintain the continuity of SME production processes while adapting to the dynamics of the business climate and the applicable positive legal provisions,” said Minister of Industry Agus Gumiwang Kartasasmita in a statement in Jakarta on Monday, January 19, 2026.
Easier Access to Raw Materials for SMEs
The Minister noted that SME development still faces various challenges, including limited access to raw materials, technology, human resources, marketing, and financing. On the other hand, several raw and/or auxiliary materials needed by SMEs still have to be sourced through imports.
“The challenges often faced by SMEs in obtaining imported raw materials include limited local supply with specific standards, relatively small import volumes that make it difficult to meet import requirements, limited direct access to domestic producers, and the complexity of import licensing documents,” he explained. These conditions have the potential to increase production costs, reduce competitiveness, and hinder the sustainability of SME production.
As a solution, Government Regulation No. 28 of 2021 on Industrial Implementation, in conjunction with Government Regulation No. 46 of 2023, provides a pathway for SMEs that cannot independently import to meet their raw material and/or auxiliary material needs through the Center for Raw and Auxiliary Materials Supply (PPBB).
In line with these provisions, the Ministry of Industry (Kemenperin) is currently developing a governance framework for importation through PPBB, which regulates the mechanisms for designation, importation, verification of SME capabilities, reporting, monitoring, and facilitation through a draft ministerial regulation, the Draft Minister of Industry Regulation on the Center for Raw and Auxiliary Materials Supply (RPermenperin).
The RPermenperin is designed to provide SMEs that are not yet capable of independent importing with guaranteed access to raw materials. This scheme is implemented through business entities holding a General Importer Identification Number (API-U) in accordance with applicable regulations and officially designated as PPBB by the Minister of Industry.
“To maintain the stability of the domestic industry, the importation of raw and/or auxiliary materials through PPBB is ensured to be properly targeted, as such imports can only be distributed to SMEs that have a supply contract with PPBB,” said the Minister of Industry.
The Minister also emphasized that PPBB represents a form of affirmative government policy for SMEs.
“PPBB can submit plans for import needs, both for commodities regulated through the Commodity Balance and other commodities governed by applicable laws and regulations,” he added.
Under the RPermenperin, PPBB is designated based on specific commodities along with the list of SMEs served. This designation serves as the basis for PPBB to submit import plans or obtain import approval for required commodities.
Director General of Small, Medium, and Various Industries (IKMA) Reni Yanita explained that PPBB is a business entity providing raw and/or auxiliary materials to meet the needs of SMEs. PPBB must be a legal entity based in Indonesia, have or control storage space of at least 500 square meters in a single location, and serve a minimum of five SMEs using raw or auxiliary materials according to the commodity groups regulated under the import policy.
“In order to simplify administration, PPBB designation applications are submitted through the National Industry Information System (SIINas). With this policy, it is expected that business entities holding an API-U will not face difficulties in obtaining PPBB designation. However, meeting the criteria and requirements must still be observed, particularly the obligation for SMEs served to regularly report industrial data in SIINas,” explained Reni.
By utilizing the PPBB facilities, SMEs requiring imported raw and/or auxiliary materials are expected to gain easier, more affordable, and higher-quality supply access. Moving forward, the Ministry of Industry (Kemenperin) also plans to provide various incentives and facilities for PPBB, both fiscal and non-fiscal. This initiative aims to boost SME productivity and competitiveness while simultaneously supporting national economic growth.
Conclusion
Through strategic policy reforms and the PPBB scheme, Indonesia is fostering a more resilient and competitive SME sector, ensuring that small and medium enterprises can access the necessary raw materials to sustain production, improve efficiency, and drive broader economic development.
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