MSMEs Must Take Advantage Of Digital Economic Opportunities, Sandiaga Uno Appreciates INOTEK, Sampoerna, And BRIN Collaboration

Sandiaga Uno recommends MSMEs to take advantage of the digital economy. (IST)

JAKARTA - Minister of Tourism and Creative Economy, Sandiaga Uno, encourages Micro, Small and Medium Enterprises (MSMEs) to take advantage of the potential of the digital economy which is predicted to reach USD 110 billion by 2025. The government is committed to protecting and supporting MSMEs to be able to compete fairly and develop their business.

In the 2024 Entrepreneur Innovation and Digitization event for Advanced Acceleration (IDEAL), Sandiaga appreciated the MSME Program for Indonesia (UUI), the collaboration of the Indonesian Technology Innovation Foundation (INOTEK), the National Research and Innovation Agency (BRIN), and the Sampoerna Entrepreneurship Training Center (SETC). This program assists MSMEs in the digitalization and innovation process to support a sustainable economy.

"I appreciate Sampoerna SETC's initiative. This program accelerates the digitization of MSMEs that contribute to the sustainable economy," Sandiaga said in a written statement received Monday, October 14.

Increased MSME Capacity Through Collaboration

The UUI program has accompanied 1,000 MSMEs in DKI Jakarta and West Java since February 2024. The IDEAL 2024 event is the culmination of this program, which chose the five best MSMEs for further assistance from INOTEK, BRIN, and Sampoerna SETC. The selected MSMEs are Batik Gending Amarta, Bogor Sari Nutrition (Yess Yoghurt), Imah Teuweul Indonesia, Madu Non Pasteurization, and Mbrebes Mili Food.

Sandiaga hopes that, with this assistance, more than 64 million MSMEs in Indonesia can take advantage of BRIN's research and innovation to create new business opportunities.

MSME Challenges: Not Just Funding

According to Sandiaga, the main challenge for MSMEs is not funding, but increasing the capacity of human resources (HR). Training and human resource development are important to produce quality and sustainable products.

"If MSMEs have sufficient knowledge, opportunities will be open. Funding will come later. The first challenge is capacity development, then marketing, and then funding," said Sandiaga.

Research And Innovation Collaboration For MSMEs

The head of BRIN, Laksana Tri Handoko who was present as a panelist emphasized the importance of innovation and adaptability for MSMEs. Through the BRIN innovation platform, MSME players can access research solutions to overcome field challenges.

"MSME innovation is closely related to their ability to adapt. Surviving MSMEs are the ones who create new innovations that are different from products in the market," explained Tri Handoko.

The Importance Of Digitalization And Human Resources

Herfan Brilianto Mursabdo, Assistant Deputy for the Coordinating Ministry for the Economy, added that HR capacity is the main key, while technology is only a tool. Digital literacy and equitable technology infrastructure are very important, especially in areas that still experience slow internet constraints and high credit costs.

Riza Damanik, Expert Staff of the Ministry of Law and Human Rights, said that the Covid-19 pandemic has accelerated the digitization of MSMEs. Prior to the pandemic, only 9 million MSMEs went digital. Now, the number has increased to 25 million, with a target of 30 million MSMEs going digital by the end of this year.

"The biggest challenge is low digital literacy, but our MSMEs are fast to learn, so the number of going digital continues to increase," said Riza.

Riza added that digitization is not only a matter of bringing products to e-commerce. Digitization must also increase productivity and efficiency in every business process. Research shows that 84% of MSMEs have stated digitalization increases sales, and 73% have stated that operational efficiency is increasing.

With the collaboration between the government and the private sector, as well as increasing digital literacy and infrastructure, it is hoped that Indonesian MSMEs can grow and compete in the era of the digital economy.