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Digitalisation important for entrepreneurs in Indonesian tourism sector

Image credit: setkab.go.id

Digitalisation plays an important role for creative entrepreneurs in tourist villages, according to Minister of Tourism and Creative Economy/Head of the Tourism and Creative Economy Agency Sandiaga Salahuddin Uno.

During a visit to Batu Layang village in Puncak, Bogor regency, West Java province, the minister said that MSME entrepreneurs in these villages must be digitally literate. Further, the Ministry of Tourism and Creative Economy are keen to implement initiatives to better facilitate more MSMEs to join the digital ecosystem or e-commerce.

According to the minister, since Batu Layang village has the advantage of excellent internet connectivity it would be advisable to introduce them to the e-commerce world. Guidance on digital marketing and making use of online platforms is essential at this stage for creative entrepreneurs in the village. This is more pertinent as the village was recently awarded a certificate of “Sustainable Tourist Village” from the Ministry of Tourism and Creative Economy on 1 March 2021.

The government is committed to spare no efforts to guide the village as they are confident that with suitable training and guidance, the village can do well. Once the village has a window to the online market, access to investment and the ability to scale up, there would no limit to what would be possible. Minister Uno added adding that his ministry is taking measures to synergise efforts with the economic recovery program launched by the Government of West Java province.

Sandiaga acknowledged that the development of tourist villages creates direct economic impacts on the local community. None the less, he reminded the people of Batu Layang village to always observe strict health protocols amid the pandemic. “Let us revive our tourism and creative economy. We will start with the digitalisation of onboarding in Batu Layang Village in Cisarua. However, everything must be carried out by observing health protocols.”

The government is pushing for digital transformation in a bid to boost efficiency and cut operational costs as it lags behind other countries in implementing digital regulations and services. The government is working on across the board to embrace the digital era, including improving technological capabilities and creating new regulations to ensure sustainability and privacy.

Additionally, Indonesia has been keen to digitally empower all sectors and industries in a bid to both survive and thrive in the evolving digital landscape and the new normal. Digital transformation in Indonesia is escalating, and many industries and businesses are diving into the rapid change to get a piece of the lucrative pie. Such brings in added revenue, increased efficiency and productivity and a better citizen and client experience.

In fact, Indonesia is striving to become one of the major global players. The main goal is to have Indonesia in the top 10 countries that have the strongest economy in the world by 2030. Indonesia aims to ramp up its economic growth significantly – predicted to hit US$150 billion by 2025 with a 10% GDP increase every year.

OpenGov Asia recently reported on the country’s efforts in the digitalisation of its fast-moving consumer goods (FMCG) sector. As Indonesia constitutes 40% of Southeast Asia’s (SEA) total population of 664 million people, research says, the country has a growing base of captive consumers for FMCG in the region making it an extremely important market for the FMCG sector within SEA.

Similarly, logistics – the heart of domestic and international trade – remains a considerable challenge in Indonesia’s supply chain. Exacerbated by the country’s unique archipelagic makeup of 17,000 islands, goods cannot be transported using trucks on land alone. A multimodal system, using land and sea transport as well as warehouses, is needed to reach remote areas of each island.

Consequently, the nation has the highest logistics costs in Asia, accounting for nearly one-quarter (24%) of the country’s Gross Domestic Product (GDP) as against developed economies, where it is below 5%. Technology is seen as a way to make the supply chain more efficient and cost-effective. By using technology to match demand and supply through a curated marketplace platform, shippers and businesses can be easily connected to readily available warehouses and trucks.

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