February 23, 2024

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Digital Trading, MSMEs Boost Indonesia’s Digital Economy

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The Ministry of Communication and Information Technology of Indonesia’s most recent initiative is the Digital Technology 4.0 Adoption Programme for MSMEs, which is a long-term assistance programme for MSME producers in the processing sector in 13 priority areas -a part of their digital transformation promotion for Micro, Small, and Medium Enterprises (MSMEs).

North Sumatra, Bangka Belitung, Banten, Greater Jakarta and the Thousand Islands, Central Java and the Special Region of Yogyakarta, East Java, West Kalimantan, West Nusa Tenggara, East Nusa Tenggara, Southeast Sulawesi, North Maluku, West Papua, and Papua are among the thirteen provinces.

This programme will be carried out for 6 months offline and online, involving 165 facilitators or local heroes, and implemented in 15 Training Centre locations spread across 13 priority areas.

– Johnny G. Plate, Minister of Communication, and Information

To support the MSME assistance facility, a starter kit in the form of a data package will be provided for 30,000 MSMEs for 6 months, equipped with a learning management system and a Point of Sales (PoS) system aggregator application. It is hoped that the MSME digital technology adoption programme 4.0 will result in an increase in the level or scaling-up of MSMEs in terms of digital technology adoption, which is divided into four levels: beginner, observer, adopter, and leader.

The beginner level is designed for MSMEs with limited business, financial, and technological dimensions. The first level is for those who are just starting out with social media. Second, observe or use a marketplace for businesses that have been managed in a relatively modern but low-tech manner. The third category is adopters, which are businesses that have a good level of technology adoption and knowledge but still use traditional business management, such as fintech platforms and aggregators and a Point of Sales system.

Meanwhile, level leaders are companies that have been managed in a relatively modern manner and have a relatively high level of technology adoption and knowledge, such as using Big Data 3D modelling, QR Code, Augmented Reality, or Virtual Reality.

The Minister of Communication and Information explained that this programme is a more intensive version of the MSME go digital or digital onboarding programme. Through this sustainable assistance facility, it is hoped that MSMEs in the manufacturing sector will be able to increase their access to marketing, income, the competitiveness of innovation, as well as the efficiency and effectiveness of their business operations, allowing them to advance to class and contribute more to the economy, particularly during the post-pandemic economic recovery.

As a result, the Minister of Communication and Information Technology believes that commitment to strategic policy support from various parties is required. This includes regional heads, ministries, and institutions, as well as industry support, including both domestic and global technology companies, as well as the national digital ecosystem.

The Role of Small and Medium-Sized Businesses in the Post-Covid-19 Recovery

According to Minister Johnny, the public is currently taking sides and prioritising job creation, and MSMEs are an important node for job creation. The number and qualifications of available jobs, as well as the quality of the jobs themselves.

“To be carried out in a sustainable manner, because our national MSMEs are very large and the foundation of our national GDP rests on MSMEs, which contribute more than 97% of jobs,” he said. This was demonstrated by the consistent increase in the contribution of the digital economy to Indonesia’s GDP.

In 2019, the contributions of the new digital economy were around 2.9%, rising to around 4% in 2020, and they are collaborating to make the digital economy’s contribution to GDP in 2030 around 18.8%. Joint efforts to gradually increase the digital economy’s contribution to the gross domestic product from year to year continue to increase and will significantly contribute to Indonesia’s GDP.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

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CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

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Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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