By: Naomi Leah Christine
The digitalization of MSMEs (Micro, Small, and Medium Enterprises) is an important step in creating economic equity in Indonesia. By leveraging technology, MSMEs can more easily access global markets and enhance their competitiveness.
The government, through various initiatives by state-owned enterprises (SOEs), continues to accelerate the digital transformation of this sector to drive more inclusive economic growth. This move is not just a short-term strategy but also part of Indonesia’s grand vision to face the rapidly growing digital economy era.
PT Bank Rakyat Indonesia (Persero) Tbk (BRI) demonstrates its commitment to the digitalization of MSMEs by organizing the BRI Microfinance Outlook 2025 at ICE BSD and the BRI MSME EXPO(RT) 2025, aimed at helping MSMEs level up to the global stage. This initiative is intended so that small business actors do not only grow within the domestic scope but can also compete in the international market.
Albert Francis Park, Chief Economist of the Asian Development Bank (ADB), considers digitalization to be the key to overcoming the capital limitations and market access barriers that have long been the main obstacles for MSMEs. With digital technology, MSMEs can operate more efficiently, reach a broader market, and reduce operational costs that have previously been hindrances.
As part of this transformation, BRI has developed a digital ecosystem such as BRI LinkUMKM, which is now used by around 8.9 million business owners. With this platform, MSME players have a tool to help them make transactions more easily and efficiently. Additionally, BRI also manages 54 BUMN Houses to support the establishment of a Digital Economy Ecosystem and introduce PARI (Integrated Commodity Platform), which is currently used by more than 85,298 users.
BRI President Director, Sunarso, emphasized that the merger of BRI Microfinance Outlook and BRI MSME EXPO(RT) 2025 is part of the effort to support the inclusive economic policies outlined by President Prabowo Subianto. With the right strategy, MSMEs are expected to become the main pillar in sustainable economic growth.
On the other hand, PT Telkom Indonesia (Persero) Tbk (Telkom) also contributes to supporting the digitalization of MSMEs through the Pasar Digital (PaDi) UMKM platform. This innovation has received appreciation at the 2024 BUMN 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, making it easier for small business owners to access the market. With this platform, MSMEs, which previously struggled to establish cooperation with large companies, now have broader opportunities.
In addition to helping MSMEs reach the market, PaDi UMKM also provides solutions for SOEs and private companies in choosing vendors and streamlining procurement administrative processes. In its ongoing innovation efforts, Telkom launched the e-faktur feature in October 2024.
This feature increases 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 contributes to a more transparent and well-structured national economy.
PaDi UMKM also offers a financing scheme that allows business owners to obtain loans of up to IDR 5 billion just by using Purchase Orders (PO) and invoices as collateral. This scheme greatly helps in fulfilling orders on time without disrupting MSMEs’ cash flow.
With this financing solution, MSMEs no longer need to face capital difficulties when fulfilling large orders, which had previously posed a challenge. EVP of Digital Business and Technology at Telkom, Komang Budi Aryasa, stressed that PaDi UMKM is not just an ordinary marketplace but also a digital solution that supports business growth and enhances the sustainability of MSMEs in Indonesia.
In his speech at the BUMN Awards 2024, Deputy Minister of SOEs, Kartika Wirjoatmodjo, stated that this award motivates SOEs to continue transforming to realize Indonesia’s 2045 Golden Vision.
The digital transformation efforts carried out by SOEs have not only impacted the operational efficiency of state-owned companies but also provided significant benefits to small and medium-sized business owners. To date, hundreds of thousands of MSMEs have joined PaDi UMKM, with a total transaction value of IDR 7 trillion, and this number continues to grow as digital adoption in the MSME sector increases.
The digital transformation of MSMEs is no longer just an option but has become a necessity that must continue to be encouraged. With increased access to technology and digitalization, MSMEs can be more competitive in facing global economic challenges.
The participation of various parties in supporting this digitalization is crucial so that MSMEs are not left behind in the digital economy development. With technological support and collaboration from various stakeholders, the digitalization of MSMEs can become the main driver of national economic growth and create a more inclusive business ecosystem.
The sustainability of this digitalization program also needs to be strengthened with education and training for MSME players. The government, SOEs, and business owners are expected to continue collaborating to create innovations and digital solutions so that MSMEs can grow faster and compete in the global market.
With the various initiatives that have been carried out, the digitalization of MSMEs is expected to have a broader positive impact in supporting Indonesia’s more advanced and highly competitive economy in the digital era.
*) The author is a contributor to Lembaga Media Inti Nesia.
