In an effort to understand the dynamics of developing micro, small, and medium enterprises (UMKM), students from the Public Administration Program at Universitas Sumatera Utara visited the Office of Cooperatives and UMKM in Batubara Regency. This visit provided important insights into the office’s role in supporting over 8,000 UMKM spread across 12 districts in the region.
The Office of Cooperatives and UMKM in Batubara Regency is committed to providing guidance and outreach to small business owners. One of their primary focuses is to assist in promoting and marketing UMKM products. Through various programs, the office aims to help UMKM in Batubara “level up” and compete in an increasingly competitive market.
During the visit, we learned that the office also conducts training on digital finance. Additionally, they assist entrepreneurs with the necessary permits, such as the Business Identification Number (NIB), halal certification, BPOM, and food safety outreach.
The governance activities carried out by the Office of Cooperatives and UMKM are routine, recognizing the importance for business owners to compete in marketing their products. However, the office faces challenges, including budget constraints and a lack of personnel to review all UMKM in Batubara.
The office also provides annual training and physical assistance. “We strive to support UMKM to grow and compete at both local and national levels,” said one of the office officials.
Potential UMKM products in Batubara Regency include songket, sambal kepah, sagon kampung, keripik gosong, and woven goods. The Office of Cooperatives and UMKM works to introduce these products through events held periodically, allowing the wider community to recognize and purchase local products.
Centers for UMKM development in Batubara Regency are not centralized in one location, but are spread across each district. For example, in the District of Lima Puluh Pesisir, there is UMKM Dangai Limonam, while in Sei Balai District, UMKM focuses on snack products.
However, challenges remain for UMKM entrepreneurs, particularly regarding operational costs and product packaging. The Office of Cooperatives and UMKM assists in packaging design, but entrepreneurs must bear the material costs themselves. This often becomes a barrier for those wishing to enhance their product’s appeal.
Regarding capital assistance, the Office of Cooperatives and UMKM provides support annually in the form of training, promotion, and equipment. This year, they are also expected to provide capital assistance. Furthermore, the office collaborates with Bank Indonesia and local companies to strengthen support for UMKM entrepreneurs.
With the introduction of new regulations such as Law No. 7 of 2021, which governs capital and UMKM criteria, the Office of Cooperatives and UMKM offers outreach to entrepreneurs to help them adapt to regulatory changes and the dynamic market conditions.
This visit demonstrates that the Office of Cooperatives and UMKM in Batubara Regency is committed to continuously supporting the development of UMKM in the region. Although challenges persist, their efforts in providing training, assistance, and product promotion are expected to encourage the growth of local businesses and enhance the competitiveness of UMKM products in Batubara at both national and international levels.