Keeping Indonesia’s MSMEs, Pindad Develop Air Rifles Craftsmen & Other MSMEs

Bandung - As a State-Owned Enterprise that engaged in the defense and manufacturing industry, PT Pindad (Persero) through the Partnership and Community Development Program Bureau (PKBL) has supported the empowerment of around 500 MSMEs until 2020. One of them is the home-based MSME air rifle craftsmen that spread in various regions such as Cipacing, Cikeruh, and Cinunuk in Sumedang and Bandung Regencies.

Air rifles are any kind of weapon that launches a pneumatic projectile with compressed air or other gas that is pressurized mechanically without involving any chemical reaction. Airguns are widely used for sports, hunting and hobbies (collections).

Air rifle craftsmen, especially from Cipacing Village, Sumedang Regency, have been known since 1960. Dozens of residents there work as artisans and have businesses producing air rifles and accessories. The types of air guns currently produced vary, not only manually or must be pumped, but currently many air guns use a compressed gas or Pre-Charged Pneumatic (PCP) system. This air gun is not only known and used by the local people of West Java, but also throughout Indonesia.

Pindad through its Partnership Program seeks to improve the ability of MSMEs to become more resilient and independent. The partnership program is channeled in the form of very light interest loans to finance their working capital in order to increase production so that later the craftsman can switch status from the craftsman to an independent entrepreneur.

Undang Rahmat, an air rifle craftsman in Cinunuk has been scouted by Pindad since the post-monetary crisis until now. "Alhamdulillah, since around 1999 after the monetary crisis, we were greatly helped by working capital loans which have low instalments. Now we can get a turnover of up to 150 million rupiahs per month for servicing, manufacturing air guns and replenishing air," said Undang.

Meanwhile Asep Edi, an air rifle craftsman in Cipacing has partnered with Pindad for 9 years and was helped in developing his business. "We made various components up to the air rifle, which was greatly helped by its development until now because the loan instalments are very light, and we able to support 14 employees," said Asep Edi.

As for H. Syamsudin, the cair rile craftsman from Cikeruh was not only helped by its capital but also from the coaching and inclusion of promoting its products in the exhibition. "We were greatly helped in developing the business and have partnered for 20 years. We were also received PPE assistance and guidance on OSH which was very useful, besides introducing its products through exhibitions supported by Pindad. Currently being assisted with coaching related to trademarks," said H. Syamsudin.

Through its Partnership Program, PKBL Pindad provides a revolving fund program in the form of working capital loans to finance their production. The assistance has a very direct impact on the development of the business of the fostered partner itself both in terms of the economy and the level of welfare of the region. Besides get a working capital loans, they also receive coaching in the form of technical training, management, simple bookkeeping techniques, awareness of Occupational Safety and Health (K3) and marketing.

The micro, small and medium enterprises (MSMEs) sector contributed 60.3% of Indonesia's total gross domestic product (GDP). Especially with the number of MSMEs now is reaching 64.2 million units, the main joint of the national economy is able to absorb 97% of the total workforce and 99% of total employment.

In the transition period following the Covid-19 pandemic, a lot of support is needed so that the MSME sector is back on track. Neither do the craftsmen of air rifles who are mostly affected and must get help and attention from the government.

Currently Pindad is also providing assistance to improve the business status of the group of air rifles craftsmen to become small entrepreneurs who have trademarks for further empowerment. Furthermore, assistance will be explored related to product patents. Pindad has also provided PPE assistance, shoes, media publications such as K3 banners and K3 banners as well as coaching operations management.

In addition to air rifle craftsmen, Pindad also synergize with its development partners in Ciwidey, Bandung Regency to produce additional accessories on Ranpur Anoa such as shovels, balincong and Indonesian Army’s standard axes on combat vehicle bodies. In addition to supporting this Pindad MSME, the fostered products also produce various kinds of machetes, knives, sickles, hoes, crowbars and various other types of agricultural equipment. In addition there are also other MSMEs such as leather-based processed craftsmen such as jackets, bags, wallets, belts, and others in the Garut region.

PT Pindad (Persero):

PT Pindad as a state-owned limited liability company was formed in 1983. Pindad is active in producing various defense equipment for the needs of the Indonesian Army, and has also exported a number of its superior products such as ammunition, weapons and combat vehicles to the global market. PT Pindad in addition to produce defense equipment, Pindad also has an Industrial Directorate that produces heavy equipment such as excavators, tractors, marine cranes and railroad hooks, traction motors to generators.

For further information, please contact:

WS Corporate Secretary, Kaka T. Rohana

E-mail: kaka@pindad.com