Remarks of President of the Republic of Indonesia at the Inauguration of the National Coordination Meeting on the 2022 Digital Transformation and Data Collection of Cooperatives and MSMEs from the State Palace, DKI Jakarta Province March 28, 2022

Bismillahirrahmanirrahim,

Assalamu’alaikum warahmatullahi wabarakatuh,

Good morning,

May peace be upon us all,

Om Swastiastu,

Namo Buddhaya,

Greetings of Virtue.

Distinguished Minister of Cooperatives and SMEs and Minister of the Indonesia Onward Cabinet.

Distinguished Governors, Regents, Mayors, Agency Heads organizing cooperatives and MSMEs throughout Indonesia,

Distinguished all cooperative members and MSMEs players throughout Indonesia,

Ladies and Gentlemen,

It is been two years since COVID-19 pandemic was declared and digitalization has become a solution for MSMEs players and cooperatives to survive, grow, and develop amid tough situations and restrictions on mobility, activities.

During the pandemic, as many as 17.5 million of MSMEs players were recorded to  have entered the digital ecosystem. The number is not enough and we must continue to increase it. We must use the current momentum as well as possible to encourage the acceleration of digital transformation, [and ensure the MSMEs] to utilize digital technology, enter the marketplace, and become part of the national and global supply chains so that the Indonesian MSMEs will advance.

Ladies and Gentlemen,

We cannot just be passive spectators amid massive situation of the digital trade era. We have to “flood” marketplaces. Indonesian MSMEs, cooperatives must “mushroom” on marketplaces with domestic products, products of MSMEs. Indeed, there is a lot we have to do. We have to encourage improvement from upstream to downstream. The products of Indonesian MSMEs must be more qualified and competitive. Together, we have to improve their packaging, branding.

I have signed Presidential Regulation Number 2 of 2022 on the 2021-2024 National Entrepreneurship Development. It is my hope that our national entrepreneurship ecosystem will improve.  It is also expected that new young entrepreneurs will be born and there will be young entrepreneurs who are productive, creative, ready to make advancement of Indonesian MSMEs to compete at the global market.

I order all ranks of the Central Government, regional governments to work hard in improving Indonesian business ecosystem. Business licenses must continue to be facilitated, access to capital must be widen, innovation and the use of technology must be strengthened, products of Indonesian MSMEs must be more creative and impressive.

Both Central Government and regional governments must work hard to improve the human resources of Indonesian MSMEs, provide trainings including new skills training, assist to optimize the use of production technology, as well as digital-based technology that can be useful for business development.

We must continue to improve comprehensive and accurate single data collection. We must have a single database of MSMEs that can navigate the development of MSMEs so that it will be more focused, targeted and sustainable. The measure will also bring MSMEs players as well as cooperative members to be more advanced and prosperous.

Ladies and Gentlemen,

I hope that this National Coordination Meeting can ensure that the number of Indonesian MSMEs that can onboard into marketplaces (go digital) must reach the target of 20 million MSMEs in 2022. It is also expected to increase to 24 million in 2023 and 30 million in 2024. If everyone works hard and has the same spirit to achieve the target we have set, I believe, insyallah, we can make it.

The number of digital-based modern cooperatives must be increased. From 250 cooperatives in 2022 to 400 cooperatives in 2023 and 500 cooperatives in 2024. And the target of onboarding 1 million MSMEs into e-catalog of the National Public Procurement Agency (LKPP) must be completed this year. This is vital.

I have ordered Governors, Regents, Mayors, Ministers, and State-Owned Enterprises CEOs that the State Budget, Regional Budget, and State-Owned Enterprises Budget should all be focused on buying domestic products, especially those produced by our MSMEs.

That concludes my speech on this auspicious occasion. By saying bismillahirrahmanirrahim, I officially inaugurate the National Coordination Meeting on the 2022 Digital Transformation and Data Collection of Cooperatives and MSMEs this morning.

I thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh.

Om santi santi santi om.

Namo Buddhaya. (AP/EP)