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SMEs Digital Ecosystem to Intensify in Indonesia

According to Dedy Permadi, Special Staff of the Minister of Communication and Information for Digital and Human Resources (HR), Indonesia’s G20 Presidency series is an important way to boost the growth of the country’s digital economy, and the Ministry of Communications and Informatics hopes that holding the G20 Summit (KTT) in 2022 will influence the community, especially in Micro, Small, and Medium Enterprises (MSMEs).

“The G20 presidency has become an important momentum in various fields and its implementation in Indonesia is expected to stimulate the spill-over effect that can be felt by the nation,” he said.

MSMEs are among those who are affected by the pandemic. This is because they are an important part of Indonesia’s digital transformation. Dedy thinks that digitalisation can help MSMEs continue to grow and deal with the effects of the pandemic that happened in the last two years.

Even though they are the main part of the economy, MSMEs in Indonesia still must deal with problems like high operating costs, growing sales, and a competitive market. The MSME Digital Technology 4.0 Adoption initiative, which was also introduced by the Ministry of Communications and Informatics, seeks to reach up to 70,000 MSMEs in Indonesia by 2024. The usage of technology 4.0, such as Big Data, Quick Response (QR) Code Payment, and Augmented or Virtual Reality, is encouraged by this programme.

Through MSMEs Go Digital, the Ministry of Communication and Informatics is actively encouraging MSMEs to use digital platforms. This project is also supported by the Proudly Made in Indonesia National Movement. Since the programme began in May 2020, about 9.2 million more MSME units have added digital capabilities.

On the other hand, MSME assistance is also done on a regular basis through the MSME Active Selling programme. This programme encourages the expansion or scaling up of technology adoption in the implementation of MSME businesses so that market access can be increased. This programme has reached 26,000 MSMEs as of 2021, and its goal for 2022 is to reach 30,000 MSMEs.

The Ministry of Communication and Information also wants to help MSMEs to become better at digital entrepreneurship. One way to do this is through the Digital Talent Scholarship (DTS) Program and the Digital Entrepreneurship Academy (DEA).

More than 63,000 entrepreneurs had been trained by DEA by the end of 2021. In 2022, DEA hopes to train 40,000 entrepreneurs in a variety of areas, such as online business strategy classes and cybersecurity for MSMEs.

MSMEs can get several advantages by joining the digital ecosystem. MSMEs can optimise transaction procedures, save operating expenses, and extend their businesses into international markets.

Additionally, compared to MSMEs that have not used digital platforms, digital MSMEs might make an income that is 1.1 times larger. Only 26.58 per cent of Indonesian MSMEs now have accounts on the marketplace, nevertheless.

Dedy believes that online platform community development activities are very important, and he thinks that partnerships encourage entrepreneurs to join the digital ecosystem and give the MSME industry intensive and useful digital help.

Furthermore, the Ministry of Communication and Information has requested all Electronic System Operators (PSE) in Indonesia, both domestic and international, to re-register immediately. The government is trying to preserve Indonesia’s digital environment and the public who are PSE Private Scope users and consumers. PSE registration is required by law and regulation. If a PSE doesn’t register by 20 July 2022, it became illegal in Indonesia and can be blocked. Currently, there are 4,634 PSEs registered which includes 4,559 domestic PSEs and 75 global PSEs, according to Semuel Abrijani Pangerapan, Director General of Informatics Applications.

 

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