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Digital ecosystem can help formalize MSMEs: ministry

Jakarta, Indonesianpost.com – The digital ecosystem can help micro, small, and medium enterprises (MSMEs) to shift from the informal to the formal sector, an official from the Cooperatives and Small and Medium Enterprises (SMEs) Ministry, Yulius, has said.

Therefore, one of the government’s priority programs is getting 30 million MSMEs to join the digital ecosystem by 2024, and their number will continue to increase in the coming years, he informed.

“We will continue to encourage micro-enterprises to migrate from the informal to the formal sector and expedite MSMEs to enter the digital ecosystem,” he said during the “MicroMentor 3 Years’ Journey in Indonesia” event here on Friday.

This effort is a major challenge for all stakeholders given that, so far, only 30 percent of the targeted MSMEs have entered the digital ecosystem.

Therefore, the ministry is continuing to synergize with the private sector to encourage more MSMEs to enter the digital ecosystem.

An example of this is its support for the digital platform MicroMentor, which is the result of a collaboration between three companies.

The Garda Transfumi has assisted more than 33 thousand MSMEs and will continue to do so in the future. It has also contributed to the issuance of business identification numbers (NIBs) while training businesses via MicroMentor.

During Friday’s event, president director of PT Mastercard Indonesia, Navin Jain, noted that MSMEs are the backbone of Indonesia’s economy.

This is because they contribute 61 percent to the national gross domestic product (GDP) and absorb 97 percent of the nation’s workforce.

MicroMentor is a commitment from the company, under Mastercard Academy 2.0, to empower 100 thousand Indonesians with the skills that they need to succeed in the digital economy.

“We believe that this program is very important in supporting post-pandemic recovery and the digital transformation journey of entrepreneurs,” he remarked.

According to Statistics Indonesia (BPS), of the total 64 million MSMEs in Indonesia, around 67 percent are in the informal sector and 33 percent are in the formal sector. 

Indonesianpost.com | Antara

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