Government agencies in Indonesia are shifting towards the utilisation of the e-commerce platform to be able to streamline operations and cater to a wider citizen base. One of these departments is the Ministry of Trade which strives to boost the competitiveness of public markets by launching a People’s Market Digitalisation programme under a partnership with the private sector.
In a statement, the Ministry described the digital platform as a tool that allows startups and small business owners to compete with bigger, more modern shopping establishments. By being more competitive, these small market players can help drive and sustain economic growth.
The project will be jointly implemented by the Ministry and PT Tokopedia under a memorandum of understanding (MoU) and a Cooperation Agreement signed in Bandung, Java. The signing of the agreement was attended by officials of the Ministry and those of the private firm.
The MoU shall be valid for three years and can be extended upon a new agreement between the parties. It is expected to aid MSMEs in terms of product promotion, information and utilisation of their market accounts. It shall also provide training to community market managers of these small businesses.
Encouraging participation of more market players
The Ministry expressed confidence that this innovative undertaking will further give market traders room for growth. Deputy Minister of Trade Jerry Sambuaga emphasised: “With this synergy, PT Tokopedia will provide promotional space facilities [by] opening people’s market accounts on the platform. This cooperation is expected to help the traditional market traders in increasing their sales online.”
This latest venture of the Ministry is part of a rollout of services to encourage more government agencies in supporting the nation’s digital transformation amid the onset of the COVID-19 pandemic. The Trade Ministry added that making the transition to digitalisation must be prioritised “so that the wheels of the economy keep turning”.
Data released by the Ministry of Communication and Informatics show that product sales through social media and e-commerce platforms reached IDR 446.75 trillion (US$ 31.7 billion) in 2020. This figure shows a significant increase from numbers plotted in 2017. The Ministry explained that this is due to online shopping becoming a viable alternative to physical shopping after the pandemic set in.
The Ministry of Trade also reiterated its call for local government units to continue to step up their game by adopting innovation.
Minister of Law and Human Rights Yasonna H. Laoly echoed this statement. In a separate media release, he said that innovation is key in providing improved public service. To emphasise, the Minister noted that they had introduced a number of innovations to support their operations during the new normal.
He added: “In the field of immigration, the Ministry of Law and Human Rights issued regulations on prohibiting the traffic of foreigners, as well as implementing health protocols for everyone entering and leaving Indonesian territory, extending online residence permits, online visas and Eazy Passport innovations.”
He also said that the Ministry is currently using information technology in handling case trials. In addition, it has launched online registration for intellectual property through the application Virtual Loket or Lokvit. This application was reported to have contributed to an increase in Non-Tax State Revenues or PNBP.
Aside from immigration and law enforcement, the government is also ramping up innovations in other industries. According to a report by OpenGov Asia, the government, in collaboration with a state-owned firm, recently put up 4 additional General Electric Vehicle Charge points. The additional infrastructure is seen to encourage wide adoption of electric vehicles like electric cars and motorbikes by consumers.
This innovation comes on the heels of an announcement by the Indonesian government that it is anticipating to have 2.1 million e-motorcycles and 400,000 e-cars on the roads by 2025.
