Mataram, University of Mataram – The Institute for Research and Community Service of University of Mataram (LPPM Unram) received a visit from the Micro, Small and Medium Enterprises (UMKM) Development Division of Bank Indonesia (BI) in order to strengthen cooperation between government agencies and universities related to the development of local UMKM through the intervention of Students Community Service (KKN). This activity took place in the meeting room of the Head of LPPM Unram on Tuesday (28/5).

On this occasion, the Head of LPPM Unram, Prof. Dr. Ir. Sukartono, M.Agr., accompanied by Prof. Dr. Ir. I Gusti Putu Muliarta Aryana, MP; Dr. Ir. Misbahuddin, ST., MT., IPU. as Head of KKN and Cooperation Centre; Dr. Ni Wayan Sri Suliartini, SP., MP. as Head of Community Service Centre; and Wahyu Munandar as a representative of BI’s UMKM Development Division.

In order to optimise the development of UMKM, BI has the task of maintaining monetary stability through controlling inflation from the side through the implementation of a more supply banking intermediation function. In addition, to support BI’s duties in balanced financial stability and payment system constraints through support for the use of rupiah and the utilisation of electronic payments.

UMKM has an important and strategic role in the structure of the Indonesian economy because it contributes greatly to Gross Domestic Product (61.1%), employment (97.1%), and exports (14.4%). BI as the Central Bank strives to make the best contribution to continuously improve the role of UMKM in the economy. The development of UMKM by BI is aligned with BI’s tasks and in line with BI’s vision, mission, and strategic programmes, so it is focused on: Supporting inflation control efforts, especially volatile food inflation, which is carried out from the supply side; Encouraging UMKM export potential and supporting tourism to support efforts to reduce the current account deficit, as well as; Increasing UMKM financial access to support financial system stability.

Through this activity, the BI UMKM Development Division carries out cross-sector collaboration with efforts to expand and accelerate the growth of UMKM to upgrade and compete, one of which is by maximising the role of students through the KKN program. Unram through the KKN Village Community Empowerment (PMD) program has a very important and strategic role in realising the strengthening of corporatisation to encourage the creation of an integrated business ecosystem, increasing capacity both in terms of human resources and business development including digitalisation to encourage increased productivity.

Starting the occasion, Wahyu Munandar as the representative of BI’s UMKM Development Division revealed, ‘This cooperation is a concrete step by Bank Indonesia in the development of UMKM in general for equitable distribution of development results and maintaining economic stability through maintaining inflation.” He also underlined the importance of involving various sectors, including academics, especially Unram.

He further asserted, “In addition to strengthening partnership relationships, the activity is also part of one of our efforts to encourage inclusive economic growth for the realisation of community welfare.”

In the context of efforts to improve UMKM, BI and Unram collaborate by focusing on strengthening UMKM and tourism. This is one of the Community Service Programmes through the KKN PMD approach to support the acceleration of economic growth through the Tri Dharma of Higher Education.

Prof. Dr. Ir. Sukartono, M.Agr. as Head of LPPM Unram in his speech said, ‘The University of Mataram through LPPM really welcomes the collaboration carried out together with the UMKM Development Division of Bank Indonesia related to efforts to encourage potential export UMKM and support tourism, as a form of community service. God willing, we can synergise this collaboration with the Student Community Service programme for Village Community Empowerment by identifying potential locations to be targeted in the implementation of this collaboration.”

“We are ready to work together and be involved in efforts to encourage the acceleration of improving economic levels through strengthening UMKM, because there is no success without collaboration,” added the Professor of the Faculty of Agriculture.

Students have the potential to educate the community as well as apply their knowledge in empowering the community. This was affirmed by the Head of KKN and Cooperation Centre, Dr Ir Misbahuddin, ST, MT, IPU.

‘In connection with the Thematic KKN (PMD), we have a theme that is relevant to the UMKM and tourism improvement programme, namely Preneur Village and Tourism, we will map out which locations are targeted and this will be the locus when we send KKN PMD students to districts / cities. In the implementation process, students will be given briefings both on substance material and mechanisms in the field,” explained Dr. Misbah.

The collaboration between the BI UMKM Development Division and Unram is a form of Unram’s commitment through the KKN PMD Programme to actively contribute to efforts to strengthen the local economy and tourism today, with the concept of a mentoring approach based on innovation and creativity.