JAKARTA, Jan. 30 (Xinhua) -- Indonesian President Joko Widodo launched on Monday an incentive program for small and medium-sized enterprises (SMEs) for importing materials to manufacture their export-oriented products, aimed at reducing their production cost.
"By reducing their manufacturing cost, we expect this program would further boost the exports of SMEs products," the president said during the event to launch the program, locally called KITE, in Tumang village located in Central Java province city of Boyolali.
The president added that it would eventually improve Indonesian SMEs' competitiveness in international trade.
Tumang is a village that houses SME firms producing copper-based goods for exports for the United States and European markets.
The program is applied by annulling import taxes and tariffs over materials, machinery and other necessities needed to produce export-oriented products by SMEs.
Indonesian Finance Minister Sri Mulyani, who was at presence, said that the program was part of government's efforts to further develop SMEs sector which gives significant contribution to the nation's economy.
The minister said that SMEs sector contributes 61.41 percent to Gross Domestic Products (GDP), employs 97 percent of the nation's total workforce.
The KITE incentive would be provided for individual SME firm, as well as those who merged into a coordinated firm and cooperatives, the minister said.
