By: Dirandra Falguni)*
Micro, Small, and Medium Enterprises (MSMEs) are the main pillars of the Indonesian economy. Based on data, MSMEs contribute around 99% of the total business units in Indonesia and contribute 60.5% to Gross Domestic Product (GDP). This sector also provides jobs for 97% of the national workforce, making it the backbone of the economy. However, MSMEs face major challenges in terms of adapting to increasingly rapid technological advances, which if not immediately addressed could hamper the growth of this sector.
Realizing the importance of digitalization, Universitas Gadjah Mada (UGM) Yogyakarta collaborated with the Ministry of Trade (Kemendag) and Google Indonesia in the Sharing Session and Public Lecture on Indonesian Trade Policy in Yogyakarta. The event aims to accelerate the adoption of digital technology among MSMEs to increase their competitiveness, both in local and global markets.
UGM Chancellor, Prof. Dr. Ova Emilia, revealed that UGM has been actively supporting MSMEs through the Community Service Program (KKN). KKN students act as agents of change who foster MSMEs down to the village level. She hopes that the collaboration with Google can strengthen this initiative so that the benefits are more tangible for the community.
In addition, UGM has the Creative Innovation Center (GIK) facility as a center for collaboration between various parties, including the government, community, business actors, and the media. He hopes that the Ministry of Trade can establish an MSME consultation center at GIK to provide guidance to business actors.
Google Indonesia’s Government Affairs & Public Policy, Raihan Ridwan explained the importance of digitalization for MSMEs. Through programs such as Gapura Digital and Women Will , Google has trained two million MSMEs in Indonesia. Raihan emphasized that the internet is the main tool for consumers in searching for product information. With the growth of the digital economy reaching 22% in 2023, digitalization is an urgent need for MSMEs to remain relevant.
Simple steps such as creating a YouTube account or Google Business Profile can help MSMEs increase exposure of MSME entrepreneurs’ products. Data shows that 70% of YouTube users make purchasing decisions based on the content they see on the platform. In addition, the Google Business Profile feature can make it easier for consumers to find MSMEs through location-based searches.
Gapurahoster Founder, Waranugraha, said that many MSMEs still have difficulty marketing their products digitally. According to him, MSME entrepreneurs only have a website, which is not enough. MSME entrepreneurs must utilize platforms such as YouTube to create creative content that attracts consumers. He gave an example, short videos on YouTube Shorts can quickly attract the attention of a wide audience.
In addition, Google Business Profiles is an effective solution to increase consumer trust in MSME products. Information that appears on Google, such as location, reviews, and product images, is very helpful in attracting new customers.
Minister of Trade Budi Santoso emphasized that the government continues to support MSMEs through various programs aimed at increasing competitiveness. He explained that protection for MSMEs is only temporary; MSMEs must be able to compete independently in domestic and international markets.
His party also encouraged MSMEs to take advantage of export opportunities. Programs such as ‘MSMEs Can Export’ aim to prepare business actors to face global challenges. The government has recorded a trade balance surplus for 54 consecutive months since May 2020, supported by the downstreaming of domestic industries. However, Budi also reminded the importance of raw material independence so that local industries do not depend on imports.
Budi explained the focus of the Ministry of Trade’s work program to create a conducive trade ecosystem to advance Indonesian MSMEs, such as securing the domestic market, expanding the export market, to the ‘MSMEs Can Export’ empowerment program. The Ministry of Trade continues to encourage Indonesian MSMEs to continue to dare to innovate and be ready to adapt to the various challenges that must be faced in global competition.
The cooperation between UGM and the Ministry of Trade was strengthened by the signing of a Memorandum of Understanding (MoU) covering the development of the Tridharma of Higher Education program, UMKM development, and student involvement in mentoring programs. The UGM Faculty of Law, for example, will support the consumer protection program, while the Directorate of Community Service will involve KKN students as UMKM mentors in various regions.
Collaboration between academics, government, and the private sector provides great hope for the future of MSMEs in Indonesia. With the adoption of digital technology, MSMEs can not only increase their competitiveness in the local market, but also reach the global market. Digitalization also opens up wider opportunities for innovation, allowing MSMEs to adapt quickly to market changes.
Through full support from various parties, MSMEs in Indonesia have great potential to become the main driver of the digital economy in Southeast Asia. As expressed by the Rector of UGM, the cooperation is not only for academic interests, but also to realize welfare for all Indonesian people.
)* Contributor to Beritakapuas.com
