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MSMEs Digitalisation to Boost Indonesia’s Digital Economy

Deputy Minister of Trade Jerry Sambuaga acknowledges that Micro, Small and Medium enterprises (MSMEs) digitalisation is an essential part of promoting Indonesia’s digital economy. The number of digitised MSMEs reached 20,997,131, an increase of 17% from the previous year. Data from 2022 shows that the total value of e-commerce transactions in Indonesia amounted to IDR 476.3 trillion, up 18.7% from the last year on a volume of 3.48 million.

He argued that strong cooperation between the federal government, regional governments, and the private sector was necessary to digitise MSMEs successfully. The commercial electronic industry from digitised MSME successfully pushed for a clear path forward.

It was reported that in 2022, the value of online sales grew by 26% from 2021, and the number of new online traders using digital platforms grew by 6% thanks to events like National Online Shopping Day (Harbolnas). The value of transactions involving locally produced goods was IDR 10 trillion, an increase of IDR 1.5 trillion, or 18%, over Harbolnas 2021, when the value of locally produced goods sold was IDR 8.5 trillion.

“Cashless payments are one of the concrete proofs of the implementation of digitalisation in the commerce sector in the market undertaken by the Ministry of Trade,” said Jerry in an Education Digitalisation of Markets, Stalls, and MSMEs discussion in Malang City, East Java.

Therefore, the Ministry of Trade supports collaboration in developing an e-commerce ecosystem. Given the enormous development potential of the digital economy, the ministry has prepared four pillars with various stakeholders.

The first pillar is that MSMEs are adaptable, creative, and motivated to grow. To increase the value of goods and supply chain efficiency and distribution to consumers, marketplaces (marketplaces) work in synergy with MSMEs through a series of capacity building, prioritising goods aggregation activities like repackaging, management assistance, and other similar endeavours.

The third pillar, contemporary retail’s function, connects MSMEs with potential business partners. In today’s modern retail environment, MSMEs can get the local products they need. Financial institutions provide the People’s Business Credit (KUR) plan as part of the fourth pillar.

To foster an environment conducive to the development of new MSMEs, the Ministry of Trade will continue to boost the contribution of trade through the electronic system by providing regulatory assistance and guidance for business.

“Collaboration, teamwork, and digital adaption are essential to overcome the current difficulties in international trade. We believe that by working together, we can advance the digital ecosystem in Indonesia, which will benefit the economy and people at all levels of society,” Jerry says.

Jerry confirmed that they are expanding the potential for creative and digital products. For example, at the Malang Creative Center, the government has a programme to aid in developing novel products. This year, the industry emphasises developing handcrafted goods like clothing, movies, comics, and games and services for consumers to use in stores.

He explained that these items were chosen because they met a need in the market for handmade items inspired by popular culture among today’s youth (specifically, animation, comics, and gaming, abbreviated “ACG”).

Intellectual property (IP) in the form of character or product patents is an export category in the ACG industry. As an illustration, consider the prevalence of product marketing featuring Marvel or Disney characters. Intellectual property is vital to expanding the ACG industry’s export capabilities and ensuring the sector’s long-term financial viability. That’s because the impact of IP on other industries will be multiplied.


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