The Rise of Small and Medium Industries in East Lombok

The Small and medium industries (IKM) are claimed to have a major contribution to manufacturing growth and the national economy of society. The earthquake in Lombok two years ago caused many SMI businesses to experience an economic downturn, starting from the market that was not running, the many damages suffered, especially production equipment, and the lack of capital to run the business.

Ertina (36), leader of the IKM group in Sembalun Lawang Village affected by the earthquake. The business she built was drop after the earthquake happened. Previously, the business was very active in producing several superior products such as potato chips and beans.

"We have formed our business from before the earthquake. We manage our business with joint capital starting from zero until finally, we can grow. But after the earthquake, our business was stopped because our equipment was broken by rubble, and there was no capital to run the business,” said Ertina.

Not wanting to continue to slump, in January 2020, Ertina attended several different training.

Wahana Visi Indonesia (WVI) supported by UNDP Petra helped to restore the economy of the people in Sembalun District. This training is held mainly for businesses that have formed in the community, such as IKM.

After participating in the training, Ertina was encouraged to re-form the business group and invite mothers who do not have a job to participate. With hope and optimism, about ten new members have been formed and have received assistance from WVI.

"We are happy and grateful for the arrival of Wahana Visi Indonesia to help our business from scratch. We are also encouraged to get back up again with various reinforcement from training and tools assistance. If we do not have this kind of assistance, of course, we only desired to move on and are not able to make the business back," she added.

According to Ertina, currently, the IKM she built, named Telaga Indah, has started producing nearly 20 kg of processed beans and can run out in 3 days. Ertina and her team return to sell the products to local stalls as a start for them to develop the business. Not only did marketing, but IKM Telaga Indah has also started accepting orders from other consumers.

"My hope is for other IKM to get back up too. Not because the earthquake and Covid-19 make us not run our businesses. Starting to look for efforts how to improve our economy as a group of IKM, both groups that are just starting and existing before," said Ertina.

Written by: Siluh Puspita, Lombok Earthquake Response Staff Wahana Visi Indonesia