The COVID-19 pandemic has also become a momentum for accelerating the digitization of MSMEs, as we are comfortable with online transactions
Jakarta (ANTARA) - Assistant Deputy for Cooperatives and MSMEs at the Coordinating Ministry for Economic Affairs Iwan Faidi invited micro, small, and medium enterprises (MSMEs) to use digital markets to help sustain and develop their businesses.

"The COVID-19 pandemic has also become a momentum for accelerating the digitization of MSMEs, as we are comfortable with online transactions. During the pandemic, MSMEs use various marketplace networks to market products," Faidi noted on Wednesday.

The COVID-19 pandemic has had a huge impact on MSMEs, with a survey of 1,180 MSMEs showing that as many as 88 percent experienced a decline in product demand.

In addition, 97 percent of the MSMEs experienced a decrease in asset value and 77 percent of the MSMEs experienced a decline in income.

Since the 2020 pandemic, the government has provided fiscal incentives through the National Economic Recovery (PEN) Program. The government also has in place a micro loan (KUR) Program under which Rp6.02 trillion was disbursed to millions of debtors as of January 17, 2022.

"As a result, the operations of MSMEs have started to return to normal as compared to that at the start of the pandemic," Faidi remarked.

According to the Coordinating Ministry for Economic Affairs, MSMEs are using National Economic Recovery assistance to utilize digital technology, so that their businesses can survive in the midst of a pandemic.

According to the ministry's records, 80 percent of the MSMEs had never used the internet while doing business before the pandemic.

Digital Marketing Specialist Dimas Gandhi believes that MSMEs need to make the most of the opportunities offered by the internet, especially since there are an estimated 239 million internet users in 2026.

The existence of digital channels is important for MSME businesses and can be in the form of email addresses, social media, instant messages, and accounts at digital marketplaces to having their own website.

Digital platforms can help MSMEs to introduce their brand image and market their products. While entering the digital platform, MSMEs will also benefit from digital payment platforms that can facilitate transactions and assist financial records.

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Translator: Natisha A, Azis Kurmala
Editor: Sri Haryati
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