The Ministry of Cooperatives and Small and Medium Enterprises launches KAU to accelerate UMKM Go Marketplace

(Photo: Prive. Doc)

IO, Jakarta – The Ministry of Cooperatives and Small and Medium Enterprises has launched the UMKM Foster Siblings (KAU) to accelerate the digital transformation efforts of UMKM actors, especially through online marketplaces. 

This program is carried out through the signing of a joint commitment toward digital marketing training through the KAU Program, between the Deputy for Human Resources Development at the Ministry of Cooperatives and Human Resources Ir. Arif Rahman Hakim, M.S., Head Director of LLP KUKM (SMESCO Indonesia) Leonard Theosabrata, and Chief Marketing Officer of Lazada Indonesia, Monika Rudijono in Jakarta, Monday (15/06/2020). 

Through KAU, KemenKopUKM will access digital marketing experts who will act as Foster Siblings, who will assist UMKM in utilizing the marketplace more efficiently. 

Prospective Foster Siblings who want to join can register through the online platform EDUKUKM. ID. Selected participants will get online training as Foster Siblings, as well as being awarded an online certificate. The Foster Siblings will then proceed to look for UMKM to assist with sales at “The current challenge of UMKM is to maximize digital marketing though online platforms, to reach a wider market more effectively and efficiently. However, only about 13 percent of UMKM have entered the online marketplace,” said Ir. Arif Rahman Hakim, M.S., the Deputy of Human Resources Development at KemenkopUKM. 

Arif added that the efforts to encourage more UMKM to enter the online market cannot be achieved only by the government, but also need to involve all relevant parties, in this case Lazada Indonesia as the marketplace provider, and the Bolu.ID community which is a space for sharing experience among UMKM. He also stressed that this cooperation is a mutual partnership, without using the state budget (APBN). 

Meanwhile, President Director of SMESCO Indonesia Leonard Theosabrata said, as an institution that continues to foster, empower and improve the welfare of UMKM in Indonesia, SMESCO Indonesia took the initiative to form the KAU movement. 

“This is in an effort to help Indonesian UMKM to be able to compete and develop their business optimally, through a digital platform,” he said. 

Leo added, the inaugural cooperation with Lazada Indonesia as an e-commerce business is expected to run well and increase knowledge and experience in the future. He also hopes that this program will be supported by stakeholders or other e-commerce actors. 

The KAU program is in line with the National Movement (Gernas) #banggabuatanIndonesia program launched by President Joko Widodo on May 14, 2020, as well as part of the Bangkitkan Bisnismu (Awakening Your Business) program initiated by Lazada Indonesia since the beginning of the pandemic, in an effort to maintain the business continuity of business people, especially UKM. 

“We are very optimistic that #BangkitkanBisnismu can contribute to Gernas #banggabuatanIndonesia, while supporting the country’s economy and UKM. One of the initiatives in the #BangkitkanBisnismu program is KAU, which is Lazada’s partnership with SMESCO Indonesia. This KAU program is an effort to encourage UMKM to develop their business in the digital platform through e-commerce,” said Monika Rudijono, Chief Marketing Officer of Lazada Indonesia. 

Nowadays, thousands of sellers and millions of local UKM productions are active on the Bangga Buatan Indonesia (Proudly Made in Indonesia) channel on the Lazada platform. In the first week the introduction of the #banggabuatanIndonesia special channel on the Lazada platform, more than 750,000 visitors came and shopped for local products on the channel. The KAU program is not only a place for introducing and empowering UMKM, but also provides an opportunity for Lazada sellers who have succeeded in guiding conventional UMKM so that they can also be successful in the digital market. 

Each Foster Sibling is expected to be able to help 2-3 UMKM to start developing their business in e-commerce. Lazada Sellers also had the opportunity to become Foster Siblings, and they will be selected based on several criteria, including the common vision and mission to empower UKM in Indonesia. 

Currently, Lazada sellers who have succeeded in building their business on Lazada are very active in sharing knowledge through various communities, such as Lazada Club and Lazada University. Initially, Lazada Indonesia will begin by recruiting 100 prospective foster siblings, each with a maximum of 3 foster siblings to be mentored.