Supporting the digital transformation of MSMEs as the economic backbone: DPR boss

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Jakarta (ANTARA) – Indonesia’s House of Representatives Spokesman Puan Maharani emphasized that supporting the acceleration of digital transformation in micro, small and medium-sized enterprises (MSMEs) is tantamount to strengthening Indonesia’s economic backbone.

“Supporting MSMEs means that we can also support (strengthen) the backbone of the Indonesian economy. One of the forms of support is to support the digital transformation of MSMEs, ”the spokesman stated in a press release on Friday.

Maharani later noted that MSME’s marketing digitization will help the community’s economy, especially in the era of the COVID-19 pandemic, which is ultimately adding to the national economy.

Indonesia’s MSMEs are still considered small, but taken together, the contribution of MSMEs to the Indonesian economy is undoubtedly enormous.

The head of the Indonesian House of Representatives pointed out that MSMEs absorbed 97 percent of the Indonesian workforce and contributed 61 percent to the country’s GDP.

Related News: Digitalization of MSMEs Necessary to Support Indonesia’s Economic Recovery

Digital Transformation for UMKM (KKMU) Presisi is a program that was launched in 1996 by the Indonesian Armed Forced Academy (Akabri) on the occasion of its 25th anniversary.

Through the digital transformation program, they made it easier for MSME players to use applications to integrate their products with various large e-commerce sites.

Maharani believes the program could address the problem of limited digital literacy that has so far become an obstacle for MSME actors. Meanwhile, digital transformation is an absolute necessity that must be mastered by MSME actors in order to survive and develop their businesses.

Previously, the expert at the Center of Reform on Economics (CORE) Indonesia, Piter Abdullah, had determined that the digital ecosystem could change the characteristics of micro and small businesses in the future.

“Based on the results of the CORE survey, there is an opportunity to change the characteristics of micro and small businesses in the future,” said Abdullah.
Similar news: Indonesia will add 30 million MSMEs to the digital ecosystem by 2024

He noted that it is currently difficult for micro and small businesses to access formal funding. However, if MSME actors are willing to join the digital ecosystem, he estimates that MSMEs will continue to grow, thereby contributing more to GDP and employing more workers.

CORE conducted a survey of 2,001 respondents in eight provinces and 12 cities, with 77 percent of responses using Java to better understand the impact of digital payments on MSMEs.

The survey results showed that digital payments have helped improve financial literacy in the nano and micro realms.

“Around 85 percent of nano and micro-businesses that did not previously have a bank account began to familiarize themselves with banking products after making digital payments,” concluded Abdullah. (IN)

Other news: Ministry of Communications is pushing the digitization of MSMEs in E Nusa Tenggara. Ahead


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