Digitalization should be end-to-end, from all aspects of MSME that includes production, management, and financial management
Jakarta (ANTARA) - Digitalization of micro, small, and medium enterprises (MSMEs) would entail much more than merely entering digital trading platforms but also maintaining consistency and services of products, an official stated.

"When we are talking about digitalization (of MSMEs), it is not just (about) entering the marketplace. There are many other aspects that must be considered in order to scale-up MSMEs and make it sustainable," Head of the Small Economy Empowerment Agency of the Indonesian Chamber of Commerce and Industry (KADIN) Bambang Brodjonegoro noted during a discussion here, Monday.

Brodjonegoro said the sustainability of MSMEs adopting digital technology to develop their businesses was influenced by several other issues, including maintaining product quality and services.

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"Many MSMEs are even less successful (when on digital platforms). Some of them are unable to maintain product consistency and service. Those, who usually handle 100 (orders) and then increase to one thousand (orders), are finally unable to serve, and it will affect the reputation of MSMEs," he noted.

He also highlighted the importance of digitalization, from the upstream to downstream sectors, so that the business and its business actors could derive maximum benefits from it.

"Digitalization should be end-to-end, from all aspects of MSME that include production, management, and financial management," Brodjonegoro stated.

"For instance, the use of an application for simple financial management, to know the financial condition, the inventory management, and customer relationships. Hopefully, the digitization of MSMEs would be like that," he added.

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Sharing the same opinion, Deputy for Human Resources, Technology, and Information at the State Enterprises Ministry, Tedi Bharata, highlighted the need for training for MSME actors to help them gain a broader understanding of financial management and digital platform they can use to support it.

"MSMEs must learn to separate their personal and business finances as well as platforms that help them. In addition, it is important to learn about online-offline marketing," Bharata stated.

"Hence, MSMEs can scale up in accordance with their needs. Meanwhile, the government also provides support that is focused on better policy and implementation, so that MSMEs can scale-up even better," he stated.


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Translator: Arnidhya Nur Zhafira, Sri Hary
Editor: Fardah Assegaf
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