Calling Technology A Necessity, Minister Teten Aims For 30 Million MSMEs Go Digital In 2024

Minister of Cooperatives and SMEs Teten Masduki. (Photo: screenshot of Bank Indonesia Youtube)

JAKARTA - Minister of Cooperatives and SMEs Teten Masduki said that the government targets around 30 million micro, small and medium enterprises (MSMEs) to be able to take advantage of digital access to increase their economy and business scale by 2024. According to Teten, this goal is very likely to be achieved through collaboration with Bank Indonesia (BI).

"The government is pushing through the Proudly Made in Indonesia program initiated together with Bank Indonesia to be able to produce 30 million MSMEs that go digital by 2024," he said through a virtual channel while attending a work agenda in Lampung, Thursday, September 9.

Teten added, a big opportunity can be utilized by MSME actors if they are able to optimize technology as a way to market their business results. The reason is that the technology utilization scheme provides its own advantages that cannot be provided through traditional or conventional methods.

"In addition to increasing MSME turnover amidst the weakening of people's purchasing power, digital use through QRIS from Bank Indonesia can be a more modern alternative to payments. Thus, business actors have stronger resilience in the midst of a crisis, and are more efficient. Moreover, the use of technological adaptation and innovation is a necessity in the future," he said.

Citing data reported by the Ministry of Cooperatives and SMEs, it is stated that the number of MSMEs currently reaches 64.2 million. Of this amount, the role of the underprivileged business contributed 61.07 percent or Rp. 8,573.89 trillion to gross domestic product (GDP).

In addition, the contribution of MSMEs to the Indonesian economy includes the ability to absorb 97 percent of the total workforce and can collect up to 60.4 percent of the total investment.

"The government and Bank Indonesia as well as other stakeholders will continue to seek synergies so that the MSME ecosystem that uses digital is wider, so that the target of achieving welfare for the community can be realized immediately," concluded Minister Teten.