The Minister Of Teten Has A Target Of 10 Million MSMEs To Go Digital By The End Of 2020

Minister of Cooperatives and SMEs, Teten Masduki. (Photo: Twitter @KemenkopUKM)

JAKARTA - The Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM) opens opportunities for micro, small and medium enterprises or MSMEs to get funding recommendations through digital records while opening a business.

The track record in question is the sale of MSME transactions connected to a digital platform. This means that MSMEs have transformed by selling through the marketplace.

Minister of Cooperatives and UMM, Teten Masduki, said that this step could be an alternative for financial institutions, both banks and non-banks, to get cheaper and easier business health references.

Furthermore, Teten said, this system will be implemented by several banking companies to distribute credit to MSME players. To expand the reach, the digitization of MSMEs will also be accelerated and is targeted to exceed 10 million business units by the end of this year.

"In addition to expanding market access in the future, digital records will also be used to monitor business health and can be an alternative for cheaper and easier financing references so that they no longer use collateral," said Teten in a vitual discussion in Jakarta, Wednesday, July 8. .

According to Teten, until now, the number of MSMEs that have been connected to the digital platform is still very small, namely 13 percent or the equivalent of 8 million business units. While the remaining 87 percent are still not connected to a digital platform.

Meanwhile, based on data from the Central Statistics Agency (BPS) in 2018 there were 64.2 million units throughout Indonesia. Of that amount, MSMEs have a contribution of 60.3 percent of Indonesia's total gross domestic product (GDP). In addition, MSMEs absorb 97 percent of the total workforce and 99 percent of total employment.

"So the digitization of cooperatives and MSMEs has become our target and President Jokowi asks that by the end of the year there will be 10 million, but we will try to exceed this 10 million," he explained.

Teten admitted, to paint the digitization of MSMEs is not easy. This is because MSMEs often experience problems when running a business using digital technology.