Luhut Asks The Governor Of North Sumatra To Support Digital Literacy MSMEs

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan. (Irfan Meidianto / VOI)

JAKARTA - The Provincial Government of North Sumatra (Sumut) is asked to be more active in empowering micro, small and medium enterprises (MSMEs). One of them is by encouraging MSMEs in North Sumatra to join the Proud National Movement program made in Indonesia.

The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said that the Governor of North Sumatra, Edy Ramayadi, must be able to make the right target. Luhut also encouraged MSMEs in the area to be digitally literate.

"We are ashamed if North Sumatra participates a little. So I ask North Sumatra, the Governor, to target how many hundred thousand MSMEs go online to make North Sumatra's economy better," he said in a webinar, Friday, June 12.

Luhut believes, Eddy can carry out the directions given well. Because, MSMEs have a very large contribution to the movement of the economy in Indonesia.

"This needs to be addressed because this is a fast process. I ask the people of North Sumatra, the Governor is also a patent person, to be proactive in doing it," he explained.

According to Luhut, UMKM is an informal sector that absorbs a large number of workers in Indonesia. Because of that, UMKM should be a concern. Moreover, 80 percent of Indonesia's economy is supported by domestic consumption.

"You can see the data that UMKM absorbs 95 percent of the total workforce, more than 115 million," he said.

Not only that, Luhut said, MSMEs also contributed 14.4 percent of the national non-oil and gas export value. The contribution of MSMEs to national GDP is also large, up to 61 percent. In fact, the investment value to the MSME sector is 56 percent of the total investment.

"Then MSMEs also contributed 14.4 percent of the export value from non-oil and gas. Then they contributed 61 percent of the national GDP, and investment in the MSME sector was 56 percent," he said.

There are still many MSMEs that are not digitally literate

Luhut said, many of the MSME sector in Indonesia were not technology literate in utilizing the digital market or online sales in Indonesia.

In fact, according to Luhut, in the midst of the COVID-19 condition that has not subsided, there has been a direct decline in sales of MSME products. Due to this condition, MSMEs must take advantage of technology to market their products through the digital market.

According to Luhut, selling MSME products online is the right solution in the midst of uncertainty when this COVID-19 event will end.

"Online sales are a great solution. We have seen the increase in this last month," he explained.

Moreover, said Luhut, the government has provided support by launching the National Proud Movement Made in Indonesia. The movement, which was inaugurated by President Joko Widodo on May 14, has succeeded in encouraging 300 thousand MSMEs to go online.

"Our target is 2 million MSMEs to enter this platform. In a month, 300 thousand have already been transformed online," he said.