"The pandemic has expedited the digital transformation of MSMEs across the world, including Indonesia," the ministry's information technology development and business incubation assistant deputy, Cristina Agustin, noted during a virtual discussion on Tuesday.
"After the pandemic, MSMEs’ need to optimize the digital ecosystem has become more inevitable," she added.
Digital ecosystem optimization is very important because several pieces of research have shown that 80 percent of MSMEs connected to the digital ecosystem have demonstrated better resiliency during the pandemic, she noted.
"In addition, national economic recovery is inseparable from the contribution of MSMEs considering that 99 percent of business actors in Indonesia are MSMEs actors," she added.
"Hence, MSMEs should continue to grow and become capable of facing competition in the national and global market," she said.
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Moreover, MSMEs' digital transformation is a holistic effort that needs to involve not just marketing, but also the development of an ecosystem that encompasses business processes, from upstream to downstream.
From March 28–30, 2022, the ministry, along with other parties, had conducted a national coordination meeting on digital transformation and complete data collection on cooperatives and MSMEs.
"The meeting aimed to moderate assistance and the digital transformation development program for MSMEs from the entire stakeholders within the digital economy ecosystem," Agustin said.
During the meeting, President Joko Widodo (Jokowi) provided instructions for expediting MSMEs' digital transformation, she informed.
"Within the instruction, firstly, cooperatives and MSMEs cannot just be spectators in digital trade, and domestic cooperatives and MSMEs products should flood the local market," she said.
Next, the quality of human resources should be bolstered to develop young entrepreneurs who are productive, creative, and competitive in the global market, she added.
The government also aims to have 30 million MSMEs enter the digital ecosystem and 500 digital-based modern corporations by 2024.
"Per April 2022, there are at least 19 million MSMEs that have entered the digital ecosystem," she informed.
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Translator: Suci Nurhaliza, Fadhli Ruhman
Editor: Suharto
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