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Digital MSMEs Grow Rapidly, Increasing Equality in Indonesia’s Economy

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By: Ricky Rinaldi

The digital transformation undertaken by the government is beginning to show tangible results for micro, small, and medium enterprises (MSMEs). Amid intense global economic competition, the growth of digital MSMEs is a key driver of national economic equality. The government’s efforts to strengthen the digital ecosystem, expand financing, and improve technological literacy have proven to be transformative for millions of businesses across the region.

Minister of MSMEs Maman Abdurrahman emphasized that digitalization is key to accelerating the transformation of the people’s economy. He stated that more than 23 million MSMEs are now connected to the digital ecosystem, and this number continues to grow. Government support through training, partnerships, and collaboration with major platforms such as Tokopedia, Shopee, and GoTo enables small businesses to reach previously closed markets. The Ministry of Cooperatives and SMEs’ latest program, “One Outlet, One Platform,” is also designed to strengthen the presence of local products in the national supply chain.

According to Maman, digitalization is not just about online marketing, but also about increasing production capacity, product quality, and financial literacy. The government is striving to enable businesses to upgrade through a more inclusive digital financing system. Through collaboration between national banks and fintech companies, the distribution of Digital People’s Business Credit (KUR) is now more accessible, especially for women entrepreneurs. He stated that nearly half of the beneficiaries of digital KUR come from women-run household businesses, which are the backbone of the family economy in many regions.

This step aligns with President Prabowo Subianto’s vision of realizing economic equality based on social justice. The government is focusing on three main pillars: expanding access to capital, strengthening digital infrastructure, and improving technological literacy. The President emphasized that economic development should not be centered in large cities but must reach all regions to ensure equitable prosperity. He emphasized that the success of digital MSMEs will be a benchmark for the strength of Indonesia’s economic foundation in the future.

Government programs emphasizing equitable digital access have also had a direct impact on increasing job opportunities. Many young people are now turning to online entrepreneurs, utilizing social media and e-commerce platforms to develop creative products. The government is encouraging collaboration with the private sector to establish more business incubators and training centers in the regions. This has proven effective in creating new jobs and growing digital-based economic centers.

The government is also strengthening digital literacy through integrated training. According to data from the Ministry of Cooperatives and SMEs, more than six million MSMEs had participated in digital training by the end of 2024. The program covers marketing strategies, cybersecurity, and brand management. President Prabowo believes that improving digital literacy is a long-term investment that will strengthen the national economy’s resilience to global turmoil.

Minister of Communication and Digital Meutya Hafid added that digital economic transformation must prioritize women as key actors. In commemoration of Heroes’ Day, she referred to women micro, small, and medium enterprises (MSMEs) as “the nation’s economic heroes” for their contribution to maintaining family economic stability. The government ensures they receive technology training and access to digital marketing to enable them to compete sustainably. According to Hafid, strengthening women’s roles in the digital MSME sector is not only about increasing income but also part of efforts to expand economic justice.

The tangible impact of economic equality is now beginning to be seen in various regions. Digitalization has enabled businesses outside Java to reach national and international consumers without having to relocate to large cities. Coffee farmers in Sulawesi, rattan craftsmen in Kalimantan, and batik makers in Central Java can now market their products directly to buyers through online platforms. The increase in revenue in these sectors demonstrates that the government’s digital strategy has successfully opened up new opportunities for local businesses.

The government continues to strengthen cross-ministerial synergy to ensure consistent digital transformation of MSMEs. Maman emphasized the crucial role of local governments in developing logistics centers and distribution networks to ensure more efficient delivery of local products. This infrastructure support will enhance domestically produced products’ competitiveness in the global market. He is optimistic that with solid cooperation between the central and regional governments, the target of 30 million MSMEs integrated into the digital ecosystem by 2028 can be achieved.

President Prabowo views the rise of digital MSMEs as a symbol of the nation’s economic independence. The government is committed to making this sector the backbone of the national economy. Through fiscal policies favoring small businesses and digital export incentives, the government affirms its support for people-driven economic growth. Digitalization is also considered a strategic step to maintain national resilience against the threat of a global recession by strengthening the domestic economic base.

The digital transformation of MSMEs demonstrates that economic equality is no longer just talk. From villages to cities, the entrepreneurial spirit is growing alongside increased access to technology and information. Collaboration between the government, businesses, and communities provides a solid foundation for building national economic independence. Through inclusive and sustainable policies, Indonesia is moving toward a future where every citizen has equal opportunities to thrive in a strong and equitable digital ecosystem.

*)Strategic Issues Observer

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