MSMEs in Indonesia urged to adopt digital technology

Minister of trade Muhammad Lutfi said the use of digital technology is vital for micro, small, and medium enterprises (MSMEs) to compete globally.
By: | April 23, 2021

“The use of digital technology is one of the main keys in accelerating the transformation of MSMEs so that they can compete globally,” Lutfi said at an online event. 

To help MSMEs compete globally, the government has been continuously encouraging them to take advantage of digital technology to strengthen their presence not only in the domestic market, but also to expand to the global export market, he added. 

But to do this, they must elevate their digital literacy skills in both basic skills – such as those needed for marketing products through online platforms, and advanced skills – such as those needed for personalising products, that have targets and segmentation, he said. 

As such, exploiting the full potential of artificial intelligence is a capability that businesses in Indonesia must master, Lutfi advised. 

Indonesia has enormous digital market potential, the minister said, adding that the value of digital economic transactions in Indonesia would reach an estimated Rp4,434 trillion (US$304.9 billion) by 2030, equivalent to 16% of the country’s GDP. 

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“We must not miss this opportunity to make Indonesian MSMEs succeed in their own country and be able to compete in the global market,” he said. 

The minister said the government remains committed to creating a conducive and friendly digital trade transaction ecosystem to create fair trade, according to Tempo.