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25 October 2022 Articles

MSMEs Digitalization: Is It Important?

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The Indonesian Employers Association (Apindo) said only 30% of Indonesia's 64 million micro, small, and medium enterprises (MSMEs) are digitally literate. Although the total number of MSMEs is quite large, digitalization is still an issue that needs to be done by every MSME’s actor.

Regarding digitalization, recently the government has always said that the use of technology for MSMEs is very important for business development. The reason is that digitalization has proven to be able to increase the class of MSMEs. We often hear the success stories of MSME actors who are able to attract the market, earn big profits, and upgrade to become bigger businesses due to their steps in the digital world.

The anomaly of the modern world about the internet also occurs in MSMEs. Based on Katadata Insight Center (KIC), there are 15.5% of MSMEs in the Greater Jakarta area (Jabodetabek) who do not have a smart phone to access the internet. We have maybe seen this fundamental thing already fulfilled and has been accessed by all circles, but there are still many who need it.

On the other hand, although many MSME actors have smart phones or computers connected to the internet, only a few of them are familiar with marketing in the digital world. Even though in the current era, more and more consumers are living a digital lifestyle, such as using the cashless method, or ordering through online marketplaces.

Digitalization in this section plays an important role in achieving financial inclusion. This means that each individual or business becomes able to access the needs of financial products and services to meet their needs, including payment methods either through mobile banking, e-wallet, or other types of digital payments.

Based on Tempo, Minister of Coordinating for Economic Affairs Airlangga Hartarto said that Indonesia has set a target to achieve digital financial inclusion of up to 90 percent by 2024. This target is very likely to be met if there is synergy between community components, including MSMEs. So, how can MSMEs that have not yet started digitalization get started? The author adapts Verihubs' ideas regarding digitalization efforts, which can be seen as follows.

Determine Your Own Business Model

Business actors need to determine the business model to be run. This model will be the starting point for reaching various aspects of the business. This type of model includes the payment sector, sales, to the provision of goods/services.

Choose the Platform

Starting from the document management platform, product sales, HR management, to the management of operational funds, payments, and marketing matters, all must be determined. Simply put, which e-commerce to choose, what digital payment method to use, and what type of sales method to use. In the methods section, delivery services and business chatbots are the types you might choose.

Maximize Use of Social Media

One of the platforms that any type of business can use is social media. In addition to the cost required is affordable, the coverage it has on the social media public is really wide.

Learn Digital Marketing Techniques and SEO

The basic principles of digital marketing must be studied well if digitization is to be carried out. Even though it's only a basic concept, MSME actors must understand SEO to find out what trends are emerging, and which parts can be applied to become innovations from MSMEs themselves.

Use Supporting Media and Software

Various supporting software can be used, but make sure to choose the software that suits your needs and budget. Likewise for media, whether cellphones, cameras, or laptops, it is very good to use types that support the needs of MSMEs.

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