Main researcher at the National Research and Innovation Agency (BRIN), Erman Aminullah, delivered the remarks at the "Digitalization: Development, Policies, and its Implementation in the Business Sector" webinar here on Thursday.
"Regulation, not closure," he stressed.
Aminullah explained that the regulation can cover the operations of online shops on social media, the distribution of imported products, as well as MSME product standards.
He said that it is essential for the government to regulate MSME product standards in order to protect consumers and the export market.
He made the statement in reference to complaints from consumers who have fallen victim to fraud, especially consumers who transacted with digitalized MSMEs.
He further said that healthy competition between conventional and digitalized MSMEs can be realized through the provision of skills training and mentoring to support digitalization in disadvantaged areas.
That way, the government would not only realize healthy competition, but also inclusivity in the digital environment, he added.
"What is more important is entrepreneurship training and mentoring," he said.
According to the researcher, MSME players will remain behind if their digital skills are not balanced with entrepreneurial skills.
He emphasized that digital-based innovation should improve the performance of local MSMEs and the community, including in running businesses.
Of course, he said, the training must be supported by internet access that is inclusive and affordable. This includes the guarantee of security to improve the community's confidence in carrying out digital transactions.
"Perhaps sharia digital finance is also needed to build an inclusive digital economy," he added.
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Translator: Putu Indah, Raka Adji
Editor: Tia Mutiasari
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