Minister Teten Says 22.81 Million MSMEs Have Entered The Digital Ecosystem As Of August 2023

Coordinating Minister for SMEs Teten Masduki (Photo: dock. Kemenkop UKM)

JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki said, as many as 22.81 million micro, small and medium enterprises (MSMEs) had been onboarding or digitizing online platforms, until August 2023.

For this achievement, the government through the Ministry of Cooperatives and SMEs (Kemenkop UKM) has also approached the digitalization target set, which is as many as 30 million MSMEs in Indonesia by 2024.

"I think we often convey digital transformations. Of our 30 million targets, today (as many as) 22.81 million MSMEs have been onboarded," said Minister Teten in a Working Meeting with Commission VI DPR RI in Jakarta, quoted Tuesday, September 5.

In addition to encouraging MSMEs to connect to digital platforms, the Kemenkop UKM also highlighted the importance of the presence of digital platforms on a local scale that target the market per region or region.

Teten said digital platforms with local scale would be more relevant to MSMEs, especially for micro-scale businesses.

He said, if people's micro-scale businesses are connected to digital platforms on a national scale, these businesses will find it difficult to survive because of their small production.

"We want local platforms. There is a local scale," said Teten.

The digitization of MSMEs is one of the eight achievements of the Kemenkop UKM priority program in 2023. The other achievements are the realization of people's business loans (KUR) of Rp. 149.9 trillion, recording 9.08 million MSMEs based on names and addresses, and building a red food oil factory in Deli Serdang, North Sumatra.

In addition, the Ministry of Cooperatives and SMEs has also succeeded in disbursing revolving funds of IDR 1.03 trillion to cooperatives and MSMEs, expanding MSME partnerships with companies in SOEs and the private sector, running five pilot projects or a preliminary project of diesel subsidies for fishermen, and streamlining 40 percent of government procurement/services spending.

Meanwhile, the Kemenkop UKM will get a budget ceiling of more than IDR 1.4 trillion in 2024. Later, the budget will be allocated to 8 priority programs of the Ministry of Cooperatives and SMEs.

A total of 8 priority programs, namely complete data collection of cooperatives and MSMEs, development of joint production houses/factory sharing, development of packaged housing services, and redesign of PLUT KUMKM/New PLUT.

Then, there is the people's market revitalization program, the development of modern cooperatives, extreme poverty alleviation, and national entrepreneurship development.