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The government’s approach to encourage micro, small, and medium businesses (MSMEs) to go digital to further expand their market could backfire. To encourage MSMEs to embrace digitalisation, the government must not only direct them to digital platforms but also train them in cyber security.
For people who are unfamiliar with technology, digitalisation is a double-edged sword that has both benefits and drawbacks. Cyber threats abound in the digital world, threatening users’ long-term safety. MSMEs that aren’t accustomed to digital technologies may be perplexed by the system’s complexity.
To that end, an IT and digital specialist emphasised that when using digital applications, users must protect themselves to avoid data theft and as a safeguard against hackers. Since the digital world is not constrained by physical space, it is necessary to maintain a tight database. OTP codes, identity numbers, and other personal information should not be freely shared with third parties. He also advised MSMEs to find a trusted marketplace with a track record of success, which he confirmed.
MSMEs should get a better understanding of digitalisation and seek references from reliable sources, according to the Indonesian IT expert. This endeavour intends to assist MSMEs in gaining appropriate expertise before joining the digital realm so that their businesses do not suffer losses. For instance, an account for an MSMEs on social media or a marketplace must be managed by the MSMEs owner, not by staff who may leave or conduct fraud in the future. Especially during the COVID-19 pandemic, digital potential should be maximised.
Recently, the Ministry of Communication and Informatics held a training session for MSMEs, with the goal of aiding and enabling 26 thousand MSMEs that are now actively selling on digital platforms.
Training Centre
The Ministry of Communication and Informatics has established a training centre in many locations to encourage MSMEs participants to use digital technologies through mentoring and assistance.
MSMEs are expected to immediately monitor sales at multiple marketplaces, as well as apps transactions or Points of Sale, through the training centre. The ministry also prepares MSMEs participants to actively use technology and digital platforms through the MSMEs Facilitation Programme Towards Active Selling.
The largest obstacle in supporting digitisation, according to I Nyoman Adhiarna, Director of Digital Economy at the Ministry of Communication and Informatics, is altering the mindset of the elder population to accept and master digital marketing. Thus, his political party will continue to offer advice, particularly in the active selling programme.
Digitalisation Significance
Minister of Cooperatives and Small and Medium Enterprises stated that the importance of digitalisation for MSME players is in line with the challenges of the Industrial Revolution 4.0 era, which requires all economic operations to change from traditional to modern.
MSMEs should be trained about the digital ecosystem strategy, which includes business processes from upstream to downstream or end-to-end digital transformation, in the future, according to Masduki. To improve the digital platform, MSMEs in Indonesia required support as well.
To accomplish the plan, the ministry would consolidate roadmap and grand designs to encourage synergies, coordination, and cooperation among all players in the digital MSMEs ecosystem. If the proposal is carried out, MSME actors will not only migrate to digital platforms but will also be protected from cyber dangers through self-protection.
OpenGov Asia reported, the Ministry of Industry renewed its call on government organisations to empower Micro, Small and Medium Enterprises (MSMEs) by holding a Startup Tech Provider 4 Industry event. The programme, themed “Having Confidence in Domestic Technology”, was well-attended by government officials and key players in the MSME industry.
The programme is part of an extensive initiative to implement the Making Indonesia 4.0 roadmap earlier launched by Indonesian President Joko Widodo. Under this blueprint, the government undertakes to improve on its existing digital infrastructure to boost several key areas in its economy. One of the ways to foster innovation outlined by this roadmap is through the creation of a healthy ecosystem for tech startups and small industries to encourage them in coming up with new digital programmes.
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