COVID-19 Pandemic, Government Encourages MSMEs To Take Advantage Of Digital Space

Illustration. (Photo: Doc. Between)

JAKARTA - Assistant Deputy for Regional Development and Supply Chain of The Ministry of Agriculture, Ari Anindya Hartika said there are several programs undertaken by the government to increase the capacity and capability of MSMEs during the COVID-19 pandemic.

"Firstly, it provides ease of business licensing, secondly the development of STRATEGIC PARTNERSHIPs of MSMEs to large companies, the third expansion of the market and the participation space of MSMEs to public infrastructure projects," ari said in the Productive Dialogue themed UMKM Digitization Geliat, organized by KPCPEN and broadcast on FMB9ID_IKP, Wednesday, May 19.

The government in this case kemenkopUKM now continues to focus on digitizing MSMEs as one of the pillars to advance this sector.

"Encouraging the informal sector to be formal, encouraging MSMEs into the supply chain, as well as the transformation of productive entrepreneurs. I think that's our strategy to encourage MSMEs to enter the digital ecosystem," he said.

Founder of Roti Eneng &Sepiring Cerita, Sarah Diana Oktavia said the coronavirus pandemic forced all businesses to transform towards digital. According to him, the COVID-19 pandemic has radically changed consumer behavior.

"People's demand in digital also grew during the pandemic," he said.

Co-Founder &Commissioner investree, Amiruddin said some business sectors are indeed growing in the midst of the coronavirus pandemic. They also use the digital space to market their products.

"Indeed we have observed there is movement in certain sectors such as logistics, health, or e-commerce, which is growing using digitalization," he said.

In addition to digitalization, Amiruddin reminded that there are non-digital things that need to be owned also by MSMEs such as, the ability to increase sales, streamline operations, and access to capital.

According to Operation &Partnership Management Telkomsel Roy Krisdianto, there needs to be a changed mindset so that Indonesian MSMEs can progress and develop.

"The average age range of our MSME entrepreneurs is at a young age, there are still many who are afraid of computers or even digital payments. Sometimes that's the problem. If we want our MSMEs to be large, our youth need to be educated entrepreneurially, so that it is more courageous to sell in the digital ecosystem," he said.

Micro, Small and Medium Enterprises (MSMEs) are one of the keys to economic growth in Indonesia. The Central Bureau of Statistics (BPS) said the number of MSMEs reached 64 million or 99.9 percent of all businesses operating in Indonesia. More than 60 percent of GDP comes from MSMEs and more than 90 percent of the workforce is absorbed by MSMEs.