Government Optimistic Pursuit Of Digitalization Target Of 30 Million MSMEs By 2024

JAKARTA - The Coordinating Ministry for Economic Affairs revealed that the value of Indonesia's digital economy continues to grow and is recorded as the highest in Southeast Asia.

In 2023, the value of Indonesia's digital economy is 82 billion US dollars.

Deputy for Coordination of the Digital Economy, Employment, and MSMEs of the Coordinating Ministry for the Economy Rudy Salahuddin said that Indonesia's digital economy in 2025 is estimated to be able to reach 109 billion US dollars.

In addition, 40 percent of Southeast Asia's digital economy market share is in Indonesia.

Rudy said that the government is optimistic that it can achieve the digitalization target of 30 micro, small and medium enterprises (MSMEs) by 2024 with various efforts that have been made by the government.

"The digitalization target is 30 million in 2024, now it is 27 million, for the acceleration of 3 million, so now we have provided education, literate MSMEs and we are also synergizing with e-commerce and fintech players to jointly encourage MSME players to go digital," he said during the launch of the White Book. National Strategy for Digital Economy Development, Monday, December 4.

The digital economy development efforts have been initiated since 2019 by involving collaboration k/l, related authorities, academics, industry players, as well as consultants through various FGDs, limited discussions, to high levels of meetings.

According to Rudy, the challenge of developing the digital economy is that our internet access is still low and digital infrastructure is also not evenly distributed, the availability of digital talent is still very lacking and not competitive.

Other challenges such as the development of digital technology are also accompanied by various data security risks and privacy violations.

As well as existing regulations and policies that are still not agile and forward looking.

In addition, Rudy assessed, the current digital MSME data is still a problem because it has not been integrated into one data, causing confusion and duplicate data.

"It is still the government's duty to make one MSME data, and it is still unfinished from the Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM), namely (the data has not been unified) and currently the system is still being built at the Kemenkop UKM," he concluded.