MSMEs with Digital Connections are Proven to Survive Better

Jakarta, InfoPublik - Minister of Cooperatives and Small and Medium Enterprises (SMEs) Teten Masduki said digitally-connected MSMEs have proven to survive better in crises, including the Coronavirus Disease pandemic (Covid-19).

"In the Covid-19 pandemic, this should be momentum to accelerate the MSMEs' digitalization in Indonesia. At present, only 13% of MSMEs enter the digital ecosystem," said Minister Teten, Thursday (6/20).

He also said, the increase in transactions through digital mostly occurred in the primary needs segment, including food, beverages, school supplies, and personal health equipment (masks, hand sanitizers).

Minister Teten always reminds e-commerce actors and market traders to anticipate changes in consumer behavior and respond to digital shopping trends.

Several times during his visits to traditional stalls in the market, he discovered that many of them had used limited digital applications.

Moreover, at present, the public and consumer awareness about hygiene are getting higher, so that the improvement of MSMEs with digitalization is a real effort to strengthen their competitiveness so that they can enter the broader and more modern market.

It needs support from Bank Indonesia (BI), especially digital payment support and Smesco Indonesia using QRIS. If it further expands, it will be a momentum for MSMEs to access a bigger market, besides providing convenience for consumers and producers in the upstream, online resellers will also contribute to each other.

Minister Teten acknowledged the fact that it was indeed not easy to assist MSMEs to enter the digital world, only around four to 10% would last in the new ecosystem. According to him, many factors caused it to happen.

"The ability to master technology is still low so that the power to respond to consumers online is also still weak. For this reason, it needs the online resellers' role to help marketing MSME products, "Minister Teten said.

Translator: Wilda Stiana