Digital technology key for MSME transformation : Trade Minister

Digital technology key for MSME transformation : Trade Minister

A footwear seller uploads pictures of her products on a digital platform. (ANTARA FOTO/Ari Bowo Sucipto/hp)

Jakarta (ANTARA) - Minister of Trade, Muhammad Lutfi, has said he believes the use of digital technology is crucial to the transformation of micro, small, and medium enterprises (MSMEs) to allow them to compete globally.

"The use of digital technology is one of the main keys in accelerating the transformation of MSMEs so that they can compete globally," Lutfi stressed at an online event with Google Indonesia on Tuesday.

The minister said the government is continuing to encourage and assist MSMEs to improve their product quality and competitiveness.

MSMEs are also being continuously encouraged to take advantage of digital technology in order to strengthen their presence not only in the domestic market, but also to expand to the global export market, he added.

For this, they must inculcate digital literacy skills, both basic skills, such as those needed for marketing products through online platforms, and advanced skills, such as those needed for personalizing products, that have targets and segmentation, he said.

"Using artificial intelligence is a capability that businesses in Indonesia must master," Lutfi advised.

The minister said that Indonesia has enormous digital market potential.

He estimated that the value of digital economic transactions in Indonesia would reach Rp4,434 trillion by 2030, equivalent to 16 percent of the gross domestic product.

"We must not miss this opportunity to make Indonesian MSMEs succeed in their own country and be able to compete in the global market," he said.

The minister pledged that the government will continue to remain committed to creating a conducive and friendly digital trade transaction ecosystem in order to create fair trade. (INE)

Related news: Digital trade must empower MSMEs: President Jokowi
Related news: PEN's stimulus package can help MSMEs to recover: Minister