Minister Teten: Digital Transformation Is No Longer A Matter Of Online Sales

JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki emphasized that digital transformation is no longer just discussing how to sell on online platforms but modernizing MSMEs

"I was attacked, the minister knew it didn't mean COD (Cash on Delivery), affiliators, sellers and so on. That's not it. We want to come here (MSME modernization), why the discussion is still being bottomed," said Teten Masduki, quoted from ANTARA, Friday, October 6.

Teten said, Indonesia must change its business with more competitive and innovative models and products if it wants to become a developed country by 2045 with per capita income above 13,000 US dollars.

If they are still struggling with MSMEs, which are 97 percent in the micro and small sectors, they will not be able to lead Indonesia to become a developed country and are even trapped in medium-income countries.

Especially if the micro and small businesses are only subsistent or only meet the needs of the house and do not use high technology.

"It is impossible for us in the next 20 years to have four presidential elections, we can have income at 13,000 US dollars. Therefore, the President has instructed me, including to immediately modernize the MSME business by opening up new business opportunities through downstreaming," he said.

A number of MSME sectors that have the potential to be developed in downstreaming are seaweed which can be produced into semi-finished goods. Then, atsiri oil which can be used as a fragrance industry, and other accultural and agricultural sectors.

"We are rich in herbs but it turns out that the extract can be produced with low and simple technology, we can become a supply chain for the cosmetics, pharmaceuticals, food and so on," he continued.

"This new business opportunity must be created, not to give birth to meatball makers anymore who are dodolators anymore. This is what we have to create because we need to create quality jobs," added Teten.

Teten said that new business actors should not be competitors of existing MSME actors.

He argues, if young entrepreneurs become competitors for MSME players, the MSME business scale will be difficult to develop.

Not to mention having to compete with foreign products entering the country.

"We really want to give birth to new entrepreneurs from young people who are aware of technology and awareness in the relevant innovative business model that is relevant and does not become a competitor to existing MSME players," he said.