Not Just Internet Access, the Challenge of MSMEs Now Shifts to Competition with Imported Products

JAKARTA - The Ministry of Communication and Digital assesses that the digital transformation of Micro, Small, and Medium Enterprises (MSMEs) has entered a new phase, where internet access is no longer a major problem.

According to the Deputy Minister of Communication and Information, Nezar Patria, with a connectivity rate of almost 98% throughout Indonesia, almost all MSMEs are currently connected to the internet.

Thus, according to him, the biggest challenge today is about how to create a fair digital market so that MSMEs can grow, compete, and not be eliminated by imported products on digital platforms.

"If we say that MSMEs must go online, it's over. Now we are talking about how they can go productive and go competitive," Nezar said in an official broadcast quoted on Thursday, April 9.

He explained that digital transformation is now directed at the concept of meaningful connectivity, namely connectivity that produces real growth.

According to Nezar, digitalization opens up opportunities, but also creates new risks. Many MSMEs face pressure from cheap imported products that enter through digital platforms.

"In this digital landscape, there is a raid by very strong competitors from outside. Therefore, our MSMEs need to get an equal position so that they can compete," he said.

For this reason, the government encourages an equal playing field so that MSMEs are not outdone by the power of global platforms and products, by starting to explore new approaches that are more open and integrated.

One of his new approaches is to adopt an open network model as implemented in India through the Open Network for Digital Commerce.

"Why not one platform that can connect to many channels. This is what India is doing, and it has been proven to increase the sales of MSMEs. We are exploring such a model," he explained.

With this new policy direction, digital transformation is expected not only to expand access, but also to actually improve the welfare of MSMEs and strengthen the national economic position in the midst of global competition.