Jakarta (ANTARA) - The Cooperatives and Small and Medium Enterprises Ministry (SMEs) has inked a memorandum of understanding (MoU) with LPP RRI to expedite micro, small, and medium enterprise (MSME) digitalization and promote MSME development programs across the country.

The role of national radio broadcasting institution RRI is crucial for optimizing Indonesia's digital economy potential, which is estimated to rise to US$146 billion by 2025, secretary of the ministry, Arif Rahman Hakim, said.

The figure makes Indonesia's digital economy potential the largest in Southeast Asia, he noted during the MoU inking event here on Monday.

In the digitalization era, radio broadcasting is still effective for promoting the government's programs, specifically digitalization programs, so that MSMEs can actively develop the digital economy in Indonesia, he observed.

The ministry itself has seven priority programs in 2023.

They comprise KUMKM (Cooperatives, Micro, Small, and Medium Enterprises) Complete Data Collection, Joint Production House, Modern Cooperatives, Extreme Poverty Eradication, Integrated Business Service Center (PLUT)-KUMKM Redesign, MSMEs Package House Service and National Entrepreneurship Development.

Within these seven priority programs, the ministry is optimizing the use of digital technology. It believes that future SMEs or MSMEs will be based on technology and creativity.

“However, the main challenge to the digital transformation of Indonesian MSMEs is digital literacy, which is still categorized as low," Hakim said.

"With support and cooperation from RRI concerning MSME development, this can hopefully be handled," he added.

The ministry is optimistic that the MSME digitalization process can continue and reach the planned target.

As of December 2022, a total of 21.56 million MSMEs have undergone digitalization and 24 million MSMEs are expected to be digitalized this year.

President director of LPP RRI, Hendrasom, stressed that his institution is continuing to increase MSME-themed broadcast programs. RRI is seeking to play a role in MSME empowerment by becoming an MSME hub and catalyst.

The cooperation between the ministry and LPP RRI covers information assistance, digital finance literacy, the MSME database, and other supporting programs.

This should be done given how important MSMEs are to the nation's economy. Developing MSMEs is the same as developing the nation, he said.

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Translator: Kuntum Khaira R, Fadhli Ruhman
Editor: Azis Kurmala
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