We are creating some awesome events for you. Kindly bear with us.

Indonesia encourages MSMEs to sell online

Indonesia has set a goal to reach US$ 130 billion worth of e-commerce transactions in 2019, according to a recent announcement.

In order to achieve this, the Government aims to encourage as many as 8 million micro, small, and medium enterprises (MSMEs) to go online in 2019.

The year 2017 saw 4.6 million MSMEs selling through e-commerce, while there were 2.7 million in 2018.

Currently, there are around 59.7 million MSMEs in Indonesia and not all of these have entered the online selling platform.

According to their data, only 9% of the MSME are using the technology. 18%, of which, are still using social media such as Facebook, Instagram and Twitter to sell their wares.

Moreover, 36% sell their products through communication applications like WhatsApp and Blackberry. Unfortunately, there are still those that use the telephone or sell offline.

Hopefully, the 18% that use social media will eventually transfer to selling through e-commerce platforms.

Through utilising e-commerce platforms, MSMEs will be able to reap several benefits. One of which, is financial where they may possibly double their revenue.

Technology allows faster transactions therefore providing an opportunity to rapidly increase their revenue as well.

As reported, the Ministry of Communication and Informatics acts as an accelerator for these MSMEs. They encourage the MSMEs to expand their businesses and sell on digital platforms.

Selling online will greatly improve the work patterns of these businesses, expanding their reach by utilising on modern technologies.

The Secretary General of the Ministry highlighted that out of the 10 start-up Unicorns in Southeast Asia, four are from Indonesia.

The Ministry has changed the way they grant business licences and made the process easier.  They have launched the Online Single Submission for a single integrated permit application.

This was done to accelerate the process and increase investments and businesses in the country.

Hopefully, an increased cooperation between the government and the business sector would also increase the competitiveness level of Indonesia at the global scale.

One of the ways this can be achieved is by promoting and selling authentic Indonesian products. Moreover, products and services that highlight the country’s local flavour should promote how internationally competitive the country is.

In addition, the article has stressed once more the importance of having a reliable human resource, which the Indonesian government has been focusing on.

Having reliable human resources will address the needs of the various businesses and industries, particularly in response to the Industrial Revolution 4.0.

Vocational education and training is a way to improve on the country’s manpower skills.

An earlier report discussed Indonesia’s Online Single Submission. It outlines the process by which businesses can obtain their business permit online.

Send this to a friend