The Government Emphasizes The Important Digitization For The Development Of MSMEs

JAKARTA - The government through the Ministry of Finance (Kemenkeu) stated that efforts to empower Medium, Small and Micro Enterprises (MSMEs) are very strategic for the Indonesian economy.

It is stated that the development of MSMEs requires a holistic approach in the ecosystem. There are at least 6 important aspects of policy at this time, namely access to finance, markets, human resource capacity, assistance and culture.

Minister of Finance (Menkeu) Sri Mulyani said digitalization played an important role in combining the six components and increasingly accelerating MSME development programs.

"For the public/consumers, it also provides many benefits through access to MSME products as well as access to financial services through reduced transaction fees," he said as reported by the official website on Friday, October 7.

According to the Minister of Finance, to develop the MSME ecosystem through digitalization requires more participation from all parties, including the involvement of the private sector.

"It can be in the form of financial technology or fintech, crowdfunding, and electronic trading to assist MSMEs who have just started, and expansion of business networks that can invite more investment," he said.

On the same occasion, Bank Indonesia Governor Perry Warjiyo explained that digitalization was proven to increase financial inclusion.

"Keep in mind that efforts to increase consumer literacy and protection also need to be continuously strengthened so that it is more optimal and minimizes risk," he said.

VOI noted that until the end of the first semester of 2022 there were 19.5 million MSMEs that had been connected to virtual access. The current government's target is to encourage 50 million MSMEs into the digital ecosystem in 2024.