Micro, small and medium enterprises (MSMEs) have a strategic role for national economic growth. In order to continue to grow rapidly, MSMEs in Indonesia are required to enter the digital ecosystem. However, several obstacles and challenges must be overcome so that all MSMEs in Indonesia are truly able to go digital.
This was discussed in the webinar themed “The Role of Millennial & Z Generations in Encouraging the Growth of Digital MSMEs in Indonesia”, in Makassar, South Sulawesi, which was organized by the Ministry of Communication and Information of the Republic of Indonesia together with the National Digital Literacy Movement (GNLD) Sibercreation.
MSMEs during the Covid-19 pandemic had slumped. Based on existing data, it was recorded that only 84.8% of MSMEs had managed to recover and get up after being down during the pandemic. MSMEs still play an important role in contributing to Indonesia’s gross domestic product (GDP) of up to 60.5% and absorbing up to 96.9% of the national workforce.
“Now, during the pandemic since 2020, MSMEs have been encouraged to enter the digital ecosystem. The government is targeting all MSMEs in Indonesia as many as 30 million MSMEs to enter the digital ecosystem in 2024 where the current achievement is only around 67.4%,” said Rovien Aryuni , Mafindo volunteers and lecturers in their presentation.
UMKM go digital, according to Rovien, is defined as a business or home-based business whose operating system and sales are carried out digitally or through a marketplace platform. Digital MSMEs can also be called online home businesses.
He continued, a number of reasons why MSMEs should be included in the digital ecosystem are creating efficiency, wider marketing reach, being able to attract more customers, and creating better business opportunities.
To prepare MSMEs to go digital, continued Rovien, there must be investment in developing digital skills. MSMEs must be able to adapt and be responsive to the rapid development of internet technology.
In addition, learning based on human digital skills must continue to be honed and developed.
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Bali ICT Volunteer Romiza Zildjian added that the entry of MSMEs into the digital ecosystem is inevitable. The reason is, nowadays people prefer to shop online because of the many conveniences offered, such as fast, efficient, time-saving processes, and lots of discounts. Online shopping has become a way of life in society.
“In order for MSMEs to be agile in entering the digital ecosystem, the government should provide support in the form of digital literacy, online courses or training, and need to collaborate or cooperate with many parties,” said Romiza.
Rector of the Makassar Nitro Institute, Moh Hatta Alwi, is of the opinion that digitalization is seen as a solution for MSME players to continue to develop. Unfortunately, there are still very few MSMEs entering the digital ecosystem, so the government is targeting 30 million MSMEs to go digital in 2024.
MSMEs, according to him, have become an important pillar of economic growth in the country. “UMKM going digital is a support for economic growth in Indonesia, such as opening new jobs, providing added value to the surrounding community, and contributing to increasing Indonesia’s gross domestic product,” he said.
The presence of the National Digital Literacy Movement program by the Indonesian Ministry of Communication and Information is expected to encourage people to use the internet in an intelligent, positive, creative and productive way.
This activity is specifically aimed at communities in the Sulawesi region and its surroundings which not only aim to create Smart Communities, but also help prepare superior human resources in using the internet positively, critically and creatively in the industrial era 4.0.
The Ministry of Communication and Informatics of the Republic of Indonesia together with GNLD Sibercreation also continues to run the Indonesia Increasingly Capable Digital program through digital literacy activities that are tailored to the needs of the community. (RO/OL-7)