East Java expects 27 thousand MSMES to enter digital market

East Java  expects 27 thousand MSMES to enter digital market

President Joko Widodo (center) reviews MSMES kiosks in the Trans Java toll road at the Kalikuto Bridge area, Kendal, Central Java, Thursday (12/20/2018). ANTARA PHOTO/Puspa Perwitasari/kye.

Surabaya, E Java (ANTARA News) - The East Java provincial administration expects 27 thousand Micro, Small, and Medium Enterprises (MSMEs) to enter the digital market by the end of 2019.

"The East Java provincial administration expects 27 thousand MSMEs to enter into the digital marketplace. Currently, some 1,200 MSMEs are entering the digital export market," East Java`s head of Industry and Trade Office Drajat Irawan stated here on Thursday.

To achieve this target, the East Java provincial administration has prepared "Warung Digital," or digital shop, to promote the potential of local MSMEs. Warung Digital will become operational in December 2018.

"The potential of MSMEs in East Java is huge and offers a high contribution to East Java`s Gross Regional Domestic Income. Nationally, East Java`s contribution reaches 20 percent, ranking second after Jakarta," Drajat noted.

The East Java provincial administration also continues to encourage MSMEs to face the challenges of industry 4.0.

Meanwhile, President Director of PT Bank Perkreditan Rakyat or East Java MSMEs Bank Yudhi Wahyu stated that the bank was ready to support the needs of MSMEs in East Java.

Yudhi pointed out that until November 2018, the East Java MSMEs Bank allocated loans worth Rp1.8 trillion, of which most were used for MSMEs.

"At present, our support for MSMEs is no longer just for selling their products conventionally but also utilizing technology for production, packaging, sales, and promotion," he stated.

Indonesia has the potential to become a leading e-commerce industry in future, as it has reliable human resources and a large local market to develop e-commerce.

The Ministry of Communication and Informatics has stated that in 2020, the volume of e-commerce business in Indonesia is forecast to reach US$130 billion, with an annual growth rate of some 50 percent.

Meanwhile, Indonesia aims to become the largest digital economy in Southeast Asia by 2020.

In addition to formulating an E-commerce Roadmap, the government is expecting one thousand new technopreneurs by 2020, with a business valuation of $10 billion.

In 2020, Indonesia`s online business revolution is forecast to boost the Gross Domestic Income by 22 percent.

Reporting by A Malik Ibrahim, Libertina
Editing Bustanudin