"We should continue the discussion on digital transformation by aiming to modernize MSMEs," he remarked at the Indonesia Digital MeetUp 2023 event in Jakarta on Thursday.
The minister noted that in order to transform into an advanced country, with per capita income exceeding US$13 thousand in 2045, Indonesia should have business actors that produce more competitive and innovative products.
Masduki pointed out that Indonesia would fail to break free from the middle-income trap if it did not have the capability of modernizing its MSMEs, 97 percent of which belong to micro and small enterprises, adding that such enterprises should start embracing advanced technology.
"Hence, Mr President has instructed officials, including me, to immediately modernize MSMEs by opening new business opportunities through downstreaming efforts," he stated.
Minister Masduki then highlighted seaweed, essential oil, and other aquacultural and agricultural products as goods that can be developed and optimized by domestic MSMEs through downstreaming.
"We are rich in herbal resources and have the capability of producing their extracts using simple technology. We can be the supplier in the cosmetics, pharmaceutical, and food industries," he elaborated.
The minister then expressed hope that Indonesian MSMEs would seize new business opportunities to create more quality job vacancies.
Furthermore, he stressed that new business actors should not become competitors to the existing MSMEs.
He explained that existing MSMEs would find it more difficult to develop their businesses if new young entrepreneurs emerged to compete with them, adding that MSMEs have been competing with foreign products entering Indonesia.
"We seek to produce young entrepreneurs that are aware of technology and aware of innovative and relevant business models. They should not become competitors to the existing MSMEs," he pointed out.
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Translator: Kuntum K, Tegar Nurfitra
Editor: Azis Kurmala
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