Indonesia’s MSMEs Must Participate in ASEAN Digital Economy
Micro, Small and Medium-sized Enterprises (MSMEs) in Indonesia must take the benefit of the current growth of the digital economy in Southeast Asia which is booming and considered the fastest growth in the world.
Southeast Asia has attracted many investors and is predicted to be the next China or India. The region is also predicted to generate US$100 billion in digital economic transaction.
“In this impressive economic growth, we must take this momentum and become the player not only the market,” Digital Business Director of Telkom Group Muhammad Fajrin Rasyid said in the last bootcamp program for 30 digital innovators organized by the Ministry of Cooperatives and Small and Medium-sized Enterprises, on Saturday (24/10).
He went on to say that Indonesia has contributed US$40 billion of the total digital economic transaction in Southeast Asia. The figure is predicted to increase to US$124 billion in 2025.
The Director told the participants of the bootcamp program not to lose the momentum of this digital economic growth since Indonesia has high number of internet users and gadget users. Based on data, 90 percent of digital transaction was made through smartphones. In addition, the majority of gadget users is millennial.
“Nearly a quarter of Indonesia’s population is millennial. They stand out for their technology use compared to older generations; millennials are technology migrants. Thus, the innovators must use this momentum to reach them,” he stated.
On the other hand, small and medium business players are mostly people aged between 40 and 50. This condition poses as a challenge and at the same time an opportunity for the millennials to engage in digital economic business. The innovators can also bridge the MSMEs and the digital economy.
In starting business, the millennials can partner with the MSMEs for example by initiating “One Youth for One Village” movement. The youth uses the internet to sell and promote products from their respective villages which can stimulate the digitalization of the MSMEs.
The innovators, he added, must have strong vision in doing business such as the founders of Facebook and Google. Thus, they can recall their vision when they face troubles and turn it into a motivation.
In addition, they must always hold a data-based principle so there will be a solution to internal conflict or argument within the team. A clear data will help us showing what we must do or improve.
For the record, 10 from 20 innovators dubbed as MSMEs’ Digital Heroes will be chose by judges through pitch session to see their qualifications and experiences in promoting digital innovation to support the MSMEs. The main event of MSMEs’ Digital Heroes will take place on 28 October 2020 where 10 winners will be announced. The 10 winners will receive prices and an offer to have strategic partnership with the Ministry of Cooperatives and Small and Medium-sized Enterprises.
The judges for the session which lasted for two days are among others Presidential Special Staffer Putri Tanjung as the initiator of the program, Special Staffer for the Minister of Cooperatives and Small and Medium-sized Enterprises Fiki Satari, and Vice President Transformation Management Office of Telkomsel Andry Firdiansyah.
In the meantime, Purti Tanjung appreciated the youth who have involved in creating innovative digital solutions for the MSMEs. She also thanked those registered for the MSMEs’ Digital Heroes program and hoped that they can play more role in helping the country’s MSMEs. (Ministry of Cooperatives and Small and Medium-sized Enterprises PR/ EN)
Translated by: Rany Anjany
Reviewed by: Lulu Wuliarti