Tuesday, 25 June 2019 | 07:04 WIB

Toy Industry Urged to be More Productive and Expand Export Market

Toy Industry Urged to be More Productive and Expand Export Market (komunitas)

JAKARTA, NETRALNEWS.COM - The toy industry in Indonesia is able to contribute significantly to the growth of the country's manufacturing and economy. Moreover, the toy industry is classified as an export-oriented labor-intensive sector, which as a whole has absorbed a workforce of 23,644 workers.

"We convey that export of toy commodities throughout 2018 reached USD $ 381.2 million, up 16.57 percent compared to $ 347 million in 2017," said the Ministry of Industry's Director General of Small, Medium and Multifarious Industries (IKMA) Gati Wibawaningsih during a visit to PT. Sinar Harapan Plastik (PT. SHP) in Jakarta, Tuesday (05/07/2019).

Gati said her office continues to encourage domestic toy industry businesses to be more productive, increase competitiveness, and expand their export markets. Through the issuance of Minister of Industry Regulation Number 35 of 2018 on the Organization and Work Procedure of the Ministry of Industry, the development of the toy industry is under the Directorate General of IKMA of the Ministry of Industry.

"Therefore, we want to see firsthand the condition of the children's toy industry and be able to absorb the aspirations of the business actors themselves," she said.

The Director General of IKMA appreciates the performance of PT SHP in meeting the needs of toy products in the domestic and export markets. "Currently, 20 percent of their total toy production is to go abroad and the remaining 80 percent is to meet domestic demand. This means that domestic demand is still good, and we are also pushing for export, "he said.

PT SHP is a producer of children's toys with the brand SHP Toys for the domestic market, and the Winny Will brand for foreign markets. The products produced by this company are toy cars and riding toys made of plastic or often called plastic injection.

The current production capacity of SHP reaches around 120,000 pcs per month and absorbs a workforce of up to 500 people, dominated by vocational high school (SMK) graduates. "This is in line with the government's priority program in developing the quality of human resources (HR), one of which is to encourage vocational education," said Gati.

Regarding efforts to boost the export of national toy products, DG IKMA has collaborated with the Indonesian Export Financing Institution (LPEI) and the existence of an Import Export Facility (KITE) facility. "This is an opportunity for IKM players to expand their export markets, by streamlining their production processes," he added.

Then, so that the performance of the toy industry sector becomes more productive and competitive at the global level, the Ministry of Industry has proposed regarding the provision of incentives in the form of super deductible tax. In addition, the toy industry sector can also utilize fiscal facilities in the form of Government Borne Import Duty (BMDTP).

"In fact, in an effort to protect domestic products and markets and avoid the onslaught of quality imported products, the government applies mandatory Indonesian National Standard (SNI) for children's toys," he explained.

In addition to providing guarantees for products that enter the domestic market with good and safe quality for consumers, according to Gati, the application of SNI is also able to increase the competitiveness of domestic products and penetrate the export market.

"Because product standards are technical barriers that can be accepted by all countries, and provide positive effects, among others, ensuring the safety, safety and quality of products," he said.

After visiting PT SHP, the Director General of IKMA continued to review PT. Megah Plastik in Tangerang, which is also a manufacturer of children's toys made of plastic. Production capacity of PT. Megah Plastik is increasing year by year, reaching 52,000 boxes in 2018. The company that was founded in 2014 has absorbed a workforce of 300 people.