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Digital Technologies Help Indonesian MSMEs Survive amid Pandemic

November 16, 2021, 04.51 PM

JAKARTA, – Only micro, small and medium enterprises (MSMEs) with digital capabilities could survive and even grow amid the Covid-19 pandemic in Indonesia, said a top official on Tuesday, November 16.

Cooperatives and Small and Medium Enterprises Minister Teten Masduki said digital transactions jumped 54 percent or more than three million transactions per day during the Covid-19 pandemic.

“The use of digital technologies is a must for MSMEs not only to survive but also to rise and contribute to the Indonesian national economy,” said Teten during the 12th Kompas100 CEO Forum organized virtually by Kompas Daily.

Also read: Indonesia Targets to Provide $140 Billion for MSMEs Credit Program in 2024

Teten said the digital economy sector is expected to reach $124 or 1,700 trillion rupiahs by 2025 in Indonesia.

Therefore, the government targets as many as 30 million MSMEs that must enter the digital ecosystem by 2024. “Currently there are 16.4 million MSMEs (are parts of the digital ecosystems) or up nearly 105 percent compared to pre-pandemic level,” said Teten.

Teten also said that his ministry had coordinated with various parties, including e-commerce to create a roadmap for MSMEs to be part of the digital ecosystems.

“To improve the quality and production capacity, we organize activities such as joint production warehouses, technical training, and others, while to support market access the BBI National Movement [proud of Indonesian-made products program] has been created,” he said.

“We have also collaborated with e-commerce to encourage MSMEs to enter their supply chains.”

(Writer: Elsa Catriana | Editor: Yoga Sukmana)




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