MSMEs in Agriculture, Digital Technologies Contribute Greatly to Indonesia Economy

JAKARTA, KOMPAS.com – Micro, small and medium enterprises (MSMEs) in the agricultural sector and digital ecosystem have significantly contributed to the economic growth during the Covid-19 pandemic in Indonesia, a minister said.

“During the pandemic, MSMEs in the agricultural sector and those MSMEs that embrace digital technologies have contributed significantly,” Cooperatives and Small and Medium Enterprises Minister Teten Masduki said during a virtual discussion organized by Tempo on Wednesday, August 18.

“As we know that the agricultural sector has grown above 12 percent this year,” Teten added.

The minister said that those MSMEs that make use of the digital platform ecosystem play an important role in economic growth. “The digital transactions especially in the food and beverage sector and home care services support the economic growth,” he said.

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The number of MSMEs entering digital platforms had reached 24 percent during the pandemic. This figure is higher compared to a pre-pandemic level where only eight million or about 13 percent of MSMEs embracing digital technologies.

“If we look at it, indeed there are MSMEs out there that have the ability to adapt to the current market,” he said.

He explained that last year, there were 14,000 MSMEs that exported their products amid the pandemic.

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The revenues of MSMEs that produce food items, herbal products, frozen food, and pharmaceutical continue to increase, he said.