Minister Teten's Efforts to Support MSME in Outskirt Cities to Level Up

JAKARTA - The Ministry of Cooperatives and SMEs (Kemenkop UKM) continue to encourage MSMEs to immediately go digital and advance in class.

To date, the number of MSMEs that have penetrated digital has reached 22 million SMEs from the target of 30 million by 2024.

Minister of Cooperatives and SMEs Teten Masduki said, to realize the target, his party is working with E-commerce to target MSMEs in suburban cities to immediately go digital and switch to cashless transactions.

"Now, we and e-commerce are targeting secondaries of cities or MSME players in suburban cities, including traditional markets," said Teten in a written statement, quoted Monday, August 7.

Teten said, Indonesia has around 18 thousand traditional markets, where if one market can be inhabited by hundreds of traders, it can later be connected to online markets (online markets), so that the target of 30 million MSMEs can be achieved by 2024.

He continued, another step by the government in increasing MSMEs onboarding is the development of internet infrastructure.

"We also support the financing aspect. So, the government's program in terms of digitizing MSMEs must partner with the e-commerce industry," said Teten.

In addition, the government is also strengthening trade regulations through Permendag Number 50 of 2020 which regulates business licensing, advertising, coaching, and supervision of business actors in electronic trading.

"The effort was carried out earlier. Right, it's not the government that has a marketplace, but e-commerce. That's also how we have to protect so that MSME products are not invaded by foreign products. We are trying to change the Permendag," said Teten.

One of the e-commerce partners with the Kemenkop UKM to encourage MSMEs to go digital is Grab Indonesia.

Teten said that his party would support Grab Indonesia's strategic steps to help empower MSME players, especially the culinary sector, to go digital and advance to class.

"In fact, now, it has entered the markets selling fruit vegetables, and daily basic necessities. It will have a big impact, especially on their turnover or income," he said.

According to Teten, the majority of MSME players are currently in the culinary sector. He said that culinary products made by MSMEs were able to compete with big businesses in the culinary sector.

Meanwhile, Grab Indonesia Country Managing Director Neneng Goenadi said this MSME celebration was a form of Grab's appreciation to all Indonesian MSME actors.

"This MSME celebration is the road to National MSME Day next week," he said.

On the same occasion, South Tangerang Mayor Benyamin Davnie said that the 2023 MSME Celebration event was in line with the program run by the South Tangerang City Government in developing MSMEs in its area.

"MSMEs in South Tangerang, especially those engaged in the culinary sector, have grown so rapidly. This is one of the advantages of South Tangerang," he said.

Therefore, said Benjamin, his party will continue to improve services in facilitating MSME actors.

"All permits, halal certificates, Business Identification Numbers or NIB, to PIRT are facilitated by the City Government. Including in making the deed of establishment of cooperatives," he added.