"However, the purchase value was small on account of the people's declining purchasing power," Mira Tayyiba, the expert staff for digital transformation, creativity, and human resources to the coordinating minister for economic affairs, stated during an online discussion here on Monday.
Tayyiba highlighted that the government had made several efforts to boost micro, small, and medium entrepreneurs (MSMEs), including encouraging them to shift to digitalization, in a bid to withstand the impact of the COVID-19 pandemic.
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One of the programs aimed at supporting digitalization was the National Movement of Being Proud of Indonesian Products (Germas BBI), which in September this year, managed to encourage two million MSMEs to join the digital ecosystem, she noted.
A decline in the purchasing power was inevitable amid the COVID-19 pandemic. To this end, the government is drafting a program to boost the people’s purchasing power to increase the number of e-commerce transactions, she noted.
"It is a pity for MSMEs that have prepared their goods. No transactions will occur if the goods cannot be sold," she stated.
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The initiative to encourage the digitalization of MSMEs was taken on account of their contribution to the national economy in addition to the fact that MSMEs are among the sectors affected by the COVID-19 pandemic, Tayyiba expounded.
Data from the Coordinating Ministry for Economic Affairs indicated that the value of e-commerce transactions jumped by 152 percent in 2018 and further moved up 88 percent in 2019.
The products sold online also varied, ranging from fashion, electronics, cosmetics, and accessories to daily essential items.
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