I highlight the target of one million MSMEs' onboarding onto the government's goods and service procurement platform. We align it with the target of the Government Goods/Services Procurement Policy Agency (LKPP) according to the direction from PresidJakarta (ANTARA) - Minister of Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Teten Masduki accentuated that MSMEs' digital transformation has become a necessity for them to survive, rise, and win the competition amid the COVID-19 pandemic.
In 2020, the number of digital MSMEs in Indonesia had totalled eight million, and the figure then later increased to 17.59 million this year in e-commerce, Masduki noted.
"This is 27 percent of the total number of MSMEs, or 58 percent of the target of 30 million MSMEs onboarding into the digital ecosystem by 2024," he stated at the 2022 National Coordination Meeting for Digital Transformation and Complete Data Collection of MSMEs here on Monday.
However, the minister remarked that digital transformation not only pertains to presenting MSMEs on a digital platform but is also a holistic effort to build an ecosystem of business processes from upstream to downstream.
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With the application of a digital approach, the minister believes that the target of 30 million MSMEs entering into the e-commerce space can be achieved to optimize the potential of Indonesia's digital economy.
"I highlight the target of one million MSMEs' onboarding onto the government's goods and service procurement platform. We align it with the target of the Government Goods/Services Procurement Policy Agency (LKPP) according to the direction from President Joko Widodo, so that we can optimize spending for domestic products from Indonesian MSMEs," he stated.
This effort is made to ensure that the digital economy's potential of Rp4,531 trillion in 2030 can be fully utilized by cooperatives, MSMEs, and the community.
Efforts to encourage digital transformation will also be discussed in the Working Group (WG) 1 as a series of the National Coordination Meeting's activities.
The WG 1 will review the strengthening of regional commitments and all stakeholders in ensuring the national movement turns digital, including encouraging the growth of new entrepreneurs and mapping out potentials and challenges.
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It will also discuss the development of assistance from each stakeholder to record digital transformation, determine the targeted strategic group, and the right cross-sectoral synergy model in the digital transformation efforts.
"Working Group 1 and the digitization of MSMEs are a forum for compiling a national roadmap towards realizing the target to help 30 million MSMEs to join the digital ecosystem," he remarked.
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As for WG 2, Masduki stated that the main goal is to map out and prepare trends for digital development directions for cooperatives and MSMEs. He expressed optimism that cooperatives and MSMEs would capitalize on the developments in digital technology.
On the other hand, the preparation of digital technology-based entrepreneurship and creativity, which will be dominated by the millennial youth, is also the main aspect of the discussion in WG 2.
Meanwhile, WG 3 will discuss cross-ministerial strategies for complete data collection of cooperatives and MSMEs. This includes mapping the role of central and local governments as well as all stakeholders in building a business with a single database of cooperatives and MSMEs as well as optimizing the role of data trustees and data producers at the provincial, district/city levels in filling out and updating data on cooperatives and MSMEs.
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Translator: M Baqir Idrus A, Resinta S
Editor: Fardah Assegaf
Copyright © ANTARA 2022
