Government's Strategy for MSME Digitization: Economic Transformation for the Future

Jakarta, INTI - Amid rapid technological development, Indonesia has enormous potential to strengthen its economy through the digitization of Micro, Small, and Medium Enterprises (MSMEs). With 67 million MSME players across Indonesia, contributing significantly to the national economy by absorbing 97% of the workforce and contributing 61% to the Gross Domestic Product (GDP), the government, through the Ministry of Communication and Digital (Komdigi), is making efforts to promote digital adoption among MSMEs to help them compete globally.

At the Pre-National Conference Seminar XIV Kagama titled “Strategies and Best Practices in Enhancing MSME Capacity to Level Up,” held at Gadjah Mada University (UGM) in Yogyakarta, Deputy Minister of Communication and Digital Nezar Patria highlighted the importance of digitalization for MSMEs. “Through digitalization efforts, we hope Indonesian MSMEs can contribute more to the national economy,” he explained.

According to Deputy Minister Nezar, the government has provided infrastructure and digital talent development programs to accelerate technology adoption. These efforts include various training programs like “1-on-1 Business Coaching,” which aims to strengthen MSMEs’ business strategies and operations, as well as partnerships with institutions to offer intensive mentoring to MSME players.

The government recognizes that using digital technology not only improves MSME efficiency and productivity but also expands their market reach to an international scale. Success stories include MSMEs like Botika, which manages chatbot services, and e-Fishery, which uses artificial intelligence in the fishery sector. “With this technology, MSMEs can grow more rapidly and efficiently, aligning with the digital transformation strategy we are promoting,” stated Deputy Minister Nezar.

As a concrete step, the government is also promoting the “3 Go” program: Go Modern, Go Digital, and Go Online. This initiative focuses on three essential stages: Go Modern to modernize MSME branding and operations, Go Digital to utilize digital applications in business processes, and Go Online to help MSMEs maximize their digital presence through social media and marketplaces.

“Through this strategy, MSMEs are expected to expand their reach and compete internationally,” explained Deputy Minister Nezar. The “3 Go” program also emphasizes the importance of leveraging social media and marketplaces to enhance MSME visibility significantly.

The seminar was attended by several prominent figures, including IV PP Kagama Paripurna P. Soegarda, Chairperson of the Committee Sulastama Raharja, MSME practitioner Kagama Iwan J Prasetyo, DPKM UGM Director Rustamaji, BRI Head of Digital Innovation Kaspar Situmorang, and Pertamina Foundation President Director Agus Mashud S. Asngari. Attended by over 200 participants, the seminar also featured the inauguration of 21 MSME Kagama communities in Yogyakarta.

The government is optimistic that, through digital technology adoption, MSMEs can continue to grow and become the main pillar of Indonesia's economy in the future, making a more substantial contribution to society's welfare overall.