The important aspect is that all cool local brands must be registered with the Law and Human Rights Ministry, so that no one duplicates themJakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that the government backs the adoption of digital technology in a bid to create resilient MSMEs.
Hartarto made the statement while receiving an audience for digital logistics start-up Shipper and several MSME brands at the Coordinating Ministry for the Economic Affairs Building. MSMEs at the event comprised Avo, BLP Beauty, Strategic Advisor Family Herbal, Jilbrave, Kokumi, and Ruby Kidz.
"With regard to licensing and research, the government can facilitate this, including with halal certification, which should be free for MSMEs," Hartarto noted, as quoted from an official statement here on Saturday.
He stated that the government facilitated the provision of Indonesian National Standard (SNI) certification for MSMEs, so that the original local products would be of much better quality as compared to fake products from abroad.
"The important aspect is that all cool local brands must be registered with the Law and Human Rights Ministry, so that no one duplicates them," Minister Hartarto stated.
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With the current rapid developments in digital economy, digital transformation had become a requirement for MSMEs to improve efficiency and business development, he affirmed.
The digitization of MSMEs offers myriad benefits in the form of product marketing during the pandemic, facilitating transactions and financial records through the use of digital payment platforms, increasing market access and business development training, as well as simplifying logistics for product delivery and distribution to customers.
The government is pursuing various initiatives and policies, such as through the Proudly Made in Indonesia Program, in order to develop MSMEs, including encouraging the adoption of digital technology. The program pushes MSMEs to market their products through e-commerce.
"Until May 2022, the percentage of MSMEs in (the digital space) had reached 63.7 percent of the total target of digitizing 30 million MSMEs, or reached 29.8 percent of the total number of MSMEs," he stated.
The minister called on MSMEs to streamline their administrative aspects, so that they would become more organized in tax-related matters.
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MSME entrepreneurs are expected to prioritize the use of domestic materials rather than rely on imports. Local MSME branding must also be improved and given the opportunity to grow and be able to compete with foreign brands.
Digital logistics start-up Shipper -- a company engaged in the digital sector and focused on supporting Indonesia's economic growth through integrated logistics and supply chain solutions, as well as the performance and achievements of local MSME brand entrepreneurs -- called on the minister to be the keynote speaker at the "Legendary Brands Festival : National Economic Hero" event on November 10, 2022, in which thousands of local MSME brands are expected to participate.
Moreover, Indonesia's economic growth in the second quarter of 2022 again recorded an impressive performance, as it is capped at 5.44 percent (yoy).
Economic growth was also attributed to positive performance of the Micro, Small and Medium Enterprises (MSME) sector that has long been an important part of the national economy and proven to be robust in withstanding turmoil, including in facing the pandemic.
Indonesia is recorded to have around 60 million MSMEs, with contribution to the GDP reaching 60.51 percent, and also making up to 96.9 percent of the total national employment rate.
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Translator: Kuntum Khaira R, Mecca Yumna
Editor: Fardah Assegaf
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