By: Naomi Leah Christine
The digitalization of Micro, Small, and Medium Enterprises (MSMEs) has become a crucial step in enhancing the capacity of micro businesses amid increasingly fierce competition. By leveraging technology, MSMEs can more easily access global markets and improve their competitiveness.
The government, through various initiatives by State-Owned Enterprises (SOEs), continues to accelerate the digital transformation of this sector to promote more inclusive economic growth. This move is not only a short-term strategy but also part of Indonesia’s broader vision to face the rapidly growing digital economy era.
PT Bank Rakyat Indonesia (Persero) Tbk (BRI) has shown its commitment to MSME digitalization by hosting the BRI Microfinance Outlook 2025 at ICE BSD and the BRI UMKM EXPO(RT) 2025, which aims to help MSMEs scale up to a global level. This initiative ensures that small business owners not only grow within domestic borders but can also compete in international markets.
Albert Francis Park, Chief Economist at the Asian Development Bank (ADB), has stated that digitalization is key to overcoming the capital and market access limitations that MSMEs have historically faced. With digital technology, MSMEs can operate more efficiently, reach wider markets, and reduce operational costs that have been previous obstacles.
As part of this transformation, BRI has developed digital ecosystems such as BRI LinkUMKM, which is now used by around 8.9 million entrepreneurs. Through this platform, MSME actors have a space to conduct transactions more easily and efficiently. BRI has also managed 54 Rumah BUMN (State-Owned Enterprise Houses) to support the development of a Digital Economy Ecosystem and introduced PARI (Integrated Commodity Platform), which is currently used by over 85,298 users.
BRI’s President Director, Sunarso, emphasized that the integration of BRI Microfinance Outlook and BRI UMKM EXPO(RT) 2025 is part of supporting the inclusive economic policy envisioned by President Prabowo Subianto. With the right strategies, MSMEs are expected to become a key pillar in sustainable economic growth.
Meanwhile, PT Telkom Indonesia (Persero) Tbk (Telkom) also contributes to supporting MSME digitalization through the Pasar Digital (PaDi) UMKM platform. This innovation has received recognition at the 2024 SOE Awards with the Outstanding Contribution to MSME Economic Empowerment award.
PaDi UMKM is a B2B marketplace that connects MSMEs with procurement in SOEs and the private sector, thus easing market access for small business owners. With this platform, MSMEs that previously struggled to cooperate with large companies now have broader opportunities.
In addition to helping MSMEs access markets, PaDi UMKM also provides solutions for SOEs and private companies in choosing vendors and simplifying procurement administration processes. Continuing its innovation, Telkom launched the e-invoice feature in October 2024.
This feature improves transparency and efficiency in Value-Added Tax (VAT) reporting, making it easier for MSMEs to meet their tax obligations. The impact is not only felt by business owners but also the national economy, which is becoming increasingly transparent and well-structured.
PaDi UMKM also offers financing schemes that allow business owners to obtain loans of up to IDR 5 billion using Purchase Orders (PO) and invoices as collateral. This scheme is very helpful in fulfilling orders on time without disrupting the MSMEs’ cash flow.
Telkom’s EVP of Digital Business and Technology, Komang Budi Aryasa, stressed that PaDi UMKM is not just a regular marketplace, but a digital solution that supports business growth and increases the sustainability of the MSME economy in Indonesia.
In his remarks at the 2024 SOE Awards presentation, Deputy Minister of SOEs, Kartika Wirjoatmodjo, stated that the award motivates SOEs to continue transforming to realize the vision of Indonesia Golden 2045.
The digital transformation efforts by SOEs not only impact the operational efficiency of state-owned companies but also significantly benefit small and medium business owners. To date, hundreds of thousands of MSMEs have joined PaDi UMKM, with total transactions reaching IDR 7 trillion, and this number continues to grow as digital adoption in the MSME sector increases.
MSME digital transformation is no longer just an option but a necessity that must be continuously encouraged. With increased access to technology and digitalization, MSMEs can have better competitiveness in facing global economic challenges.
The participation of various parties in supporting this digitalization is essential so that MSMEs are not left behind in the development of the digital economy. With the support of technology and collaboration from various sectors, MSME digitalization can become a key driver of national economic growth and create a more inclusive business ecosystem.
The sustainability of this digital transformation program also needs to be strengthened with education and training for MSME actors. The government, SOEs, and business owners are expected to continue collaborating to create innovations and digital solutions so MSMEs can develop more rapidly and compete in global markets.
With the various initiatives already undertaken, MSME digitalization is expected to have a broader positive impact on supporting Indonesia’s economy, making it more advanced and highly competitive in the digital era.
