MSMEs joining digital ecosystem fared better during pandemic: ministry

MSMEs joining digital ecosystem fared better during pandemic: ministry

Illustration—An MSME player in Yogyakarta shows her creations in an online marketplace.  According to a Youtap survey, 7 out of 10 business actors consider it important to use QRIS for payments and POS applications for business development. (ANTARA PHOTOS/Andreas Fitri Atmoko/hp/my)

It is this rapid development of digital transformation among MSMEs that can become a great potential in Southeast Asia
Jakarta (ANTARA) - Micro, small, and medium enterprises (MSMEs) that were integrated with the digital ecosystem showed a better survival rate during the pandemic, the Cooperatives and Small and Medium Enterprises Ministry has said.

"Based on our internal data, 80 percent of MSMEs connected to the digital ecosystem have better (survival rate) during the pandemic," Assistant Deputy for Information Technology Development and Incubation at the ministry Christina Agustin said in a joint press release with startup Youtap on Thursday.

As per the data, 59 percent of MSME actors in sub-urban areas have joined the digital ecosystem, which reflects the adoption of digital technology at the regional level.

"It is this rapid development of digital transformation among MSMEs that can become a great potential in Southeast Asia," Agustin noted.

Meanwhile, Youtap’s internal data has shown that 68 percent of business players have experienced difficulties and setbacks due to lack of buyers on account of the pandemic over the past two years. They have also faced difficulties obtaining stocks of goods.

During the recovery period, technology has shown the potential to help MSMEs develop. Youtap has found that business actors have grown increasingly interested in using digital technology.

According to a Youtap survey, 7 out of 10 business actors consider it important to use QRIS (Quick Response Code Indonesian Standard) for payments and point-of-sale (POS) applications for business development.

Youtap has developed its POS application to tap into this potential. While it was initially only available on tablets, it has now been made available for mobiles and offers functions such as cash and non-cash payments, product catalog displays, and menu settings for delivery services.

"The latest technology is expected to (facilitate) more modern MSMEs who are ready to adapt quickly to the development of existing digitalization," CEO of Youtap, Herman Suharto, said in the same release.

The use of point-of-sale platforms via mobile phones has generally garnered interest from micro and small businesses. Meanwhile, mid-sized businesses, such as cafes and restaurants, have shown a preference for POS platforms for tablets.

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