According to Dedy Permadi, Special Staff of the Minister of Communication and Information for Digital and Human Resources (HR), Indonesia’s G20 Presidency Series is an important way to drive the growth of the digital economy. of the country, and the Ministry of Communications and Information Technology hopes that the holding of the G20 Summit (KTT) in 2022 will influence the community, especially in micro, small and medium enterprises (MSMEs).
“The G20 presidency has become an important momentum in various fields and its implementation in Indonesia is expected to boost the ripple effect that can be felt by the nation,” he said.
MSMEs are among those affected by the pandemic. Indeed, they are an important part of Indonesia’s digital transformation. Dedy believes digitalization can help MSMEs continue to grow and cope with the effects of the pandemic that has occurred over the past two years.
Even though they are the main part of the economy, MSMEs in Indonesia still face problems such as high operating costs, growing sales and a competitive market. The MSME Digital Technology 4.0 Adoption Initiative, which was also introduced by the Ministry of Communications and Information Technology, aims to reach up to 70,000 MSMEs in Indonesia by 2024. The use of 4.0 technology, such as Big Data, Quick Response (QR) Code Payment, and Augmented or Virtual Reality, is encouraged by this program.
Through MSMEs Go Digital, the Ministry of Communication and Informatics actively encourages MSMEs to use digital platforms. This project is also supported by the national movement Proudly Made in Indonesia. Since the start of the program in May 2020, approximately 9.2 million additional MSME units have added digital capabilities.
On the other hand, assistance to MSMEs is also provided on a regular basis through the active selling program to MSMEs. This program encourages the expansion or intensification of technology adoption in the implementation of MSME enterprises so that market access can be increased. This program reached 26,000 MSMEs in 2021 and its target for 2022 is to reach 30,000 MSMEs.
The Ministry of Communication and Information also wants to help MSMEs become better at digital entrepreneurship. One way to do this is through the Digital Talent Scholarship (DTS) scholarship program and the Digital Entrepreneurship Academy (DEA).
More than 63,000 entrepreneurs had been trained by DEA by the end of 2021. By 2022, DEA hopes to train 40,000 entrepreneurs in various fields, such as online business strategy courses and cybersecurity for MSMEs.
MSMEs can gain several benefits by joining the digital ecosystem. MSMEs can optimize transaction procedures, reduce operating expenses and expand their business in international markets.
Moreover, compared to MSMEs that did not use digital platforms, digital MSMEs could generate 1.1 times higher income. However, only 26.58% of Indonesian MSMEs now have accounts in the market.
Dedy thinks that community development activities of online platforms are very important, and he thinks that partnerships encourage entrepreneurs to join the digital ecosystem and provide the MSME industry with intensive and useful digital assistance.
In addition, the Ministry of Communication and Information has requested all Electronic System Operators (PES) in Indonesia, both domestic and international, to re-register immediately. The government is trying to preserve Indonesia’s digital environment and the public who are the users and consumers of PSE Private Scope. Enrollment in EPS is required by law and regulation. If a PSE is not registered before July 20, 2022, it becomes illegal in Indonesia and may be blocked. Currently, there are 4,634 registered PSEs, including 4,559 national PSEs and 75 global PSEs, according to Semuel Abrijani Pangerapan, general manager of IT applications.