Minister Teten Says 86 Percent Of MSME Businesses Depend On The Internet

JAKARTA - The Minister of Cooperatives and Small and Medium Enterprises (UKM), Teten Masduki stated, the digital economy is very closely related to the use of digital aspects by MSME and cooperative business processes.

"It is recorded that 86 percent of MSME players depend on the internet to carry out their business activities, 73 percent have accounts at digital marketplaces, and 82 percent promote via the internet," Teten said as quoted by Antara, Monday, August 8.

Teten added that MSMEs, which contributed 61 percent of the national gross domestic product (GDP), have an important role in Indonesia's digital economy map.

This role did not subside when the pandemic hit Indonesia, because the adaptability of MSMEs that transformed during the pandemic has proven to be a key factor in MSME resilience in Indonesia.

"A study by the World Bank states that 80 percent of MSMEs that have been present in the digital ecosystem have better resilience during the pandemic," said Teten.

The digital transformation of Indonesian MSMEs is a necessity in the era of digital disruption at the end of the COVID-19 pandemic and faced with the potential for a demographic bonus.

Previously, President Joko Widodo had conveyed directions regarding the acceleration of the digital transformation of Indonesian MSMEs.

The government targets that there are 30 million onboarding MSMEs in the digital ecosystem by 2024.

As of June 2022, the Ministry of Cooperatives and SMEs noted that 19.5 million MSME players or 30.4 percent of the total MSMEs have been present on the e-commerce platform.

The government continues to encourage the creation of new economic value to bring MSMEs into the digital ecosystem, accelerate one million MSMEs onboarding on the government's goods and service procurement platform, and prioritize the use of domestic products.

Not only that, but the head of state also conveyed directions to ensure the protection of domestic online marketplace platforms.

Indonesian MSMEs, who use online marketplace platforms and markets, namely the Indonesian people themselves.

"The three directives are a guide for us in preparing complete digital transformation programs from upstream to downstream and involving all relevant stakeholders," explained Teten.

"This is an effort or endeavor so that the economic potential of MSMEs in Indonesia can provide the widest possible benefits for the community," he concluded.