Screenshot of Minister of Cooperatives and Small, Medium Enterprises (SMEs) Teten Masduki during the 'Digitizing Indonesia's Informal Economy' webinar in Jakarta, Tuesday, September 6, 2022. (ANTARA/M Baqir Idrus A/rst)
Utilizing the digital economy is an inseparable part of the MSME business processMinister of Cooperatives and Small, Medium Enterprises (SMEs) Teten Masduki emphasized that Micro, Small and Medium Enterprises (MSMEs) were not only encouraged to enter the digital ecosystem but also digitize all of their business processes.
"Utilizing the digital economy is an inseparable part of the MSME business process," he noted at the G20 webinar in Jakarta, Tuesday.
According to the minister, adaptation in the digital transformation process is the key for MSMEs to develop resilience.
During the COVID-19 pandemic, Masduki remarked that MSMEs, which were already connected to the digital ecosystem, had higher resilience and experienced business development.
"The potential of our digital economy continues to grow. This year, the value is around Rp632 trillion. In 2030, the number is forecast to grow to Rp4,531 trillion, or eight times higher, in just 10 years," he added.
Based on the McKinsey data in 2021, MSMEs transactions increased 26 percent, with 3.1 million transactions per day, accompanied by a 35-percent increase in the goods delivery sector.
In addition, the pandemic has produced 21 million new digital consumers that showed the migration from offline to digital consumers.
Moreover, amid the pandemic that restricted the people's mobility, the digital platform that provided convenience and several incentives for users also contributed to the migration from offline stores.
"Of the 21 million consumers, 72 percent are not from metropolitan cities. This means that digitalization has reached the regions and the consumers' reach is very wide," Masduki affirmed.
The demographic bonus, which is dominated by young people constituting 64.69 percent of the 270-million population, is also considered to have digital literacy awareness. Hence, it brings opportunities to encourage the acceleration of digitized MSMEs.
“We continue to support the development of young entrepreneurs for digital acceleration. In addition to encouraging them to enter the e-commerce platform, we also encourage social commerce, games commerce, and even TV commerce," he concluded.
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