Indonesia's economic growth reaches 8%, but its small and medium enterprises (UMKM) are still lagging behind in embracing digital transformation.
The Indonesian government has set an ambitious target of achieving economic growth of at least 8% per annum, driven by the resilience of domestic consumption. However, despite this impressive performance, the nation's Small and Medium Enterprises sector remains underutilized when it comes to harnessing the power of digital technologies.
Industry experts point out that UMKM players are still in need of guidance on how to leverage e-commerce platforms, digital marketing tools, and other innovative solutions to stay competitive. The lack of awareness and skills among entrepreneurs is one of the major barriers hindering their ability to tap into the digital economy.
"Only 20% of UMKM players have started to use digital technologies," said a senior industry official. "We need to boost this number significantly, so that they can take advantage of the growth opportunities in the e-commerce sector."
Government initiatives, such as the 'E-Commerce and Digital Economy' program under the Ministry of Trade and Industry, aim to bridge this gap by providing training programs, mentorship schemes, and financial support for UMKM players.
However, critics argue that more needs to be done to address the structural issues that hinder UMKM adoption of digital technologies. "We need a holistic approach that not only focuses on technology, but also on building the capacity and resilience of our entrepreneurs," said an analyst.
The government's vision is for Indonesia to become a 'Digital Economy' nation by 2025, with UMKM players playing a crucial role in driving this growth. But it will require significant efforts from both policymakers and private sector players to achieve this goal.
"The key challenge lies in translating the government's ambitions into concrete actions," said an industry expert. "We need to see more tangible investments in digital infrastructure, training programs, and incentives for UMKM players."
The Indonesian government has set an ambitious target of achieving economic growth of at least 8% per annum, driven by the resilience of domestic consumption. However, despite this impressive performance, the nation's Small and Medium Enterprises sector remains underutilized when it comes to harnessing the power of digital technologies.
Industry experts point out that UMKM players are still in need of guidance on how to leverage e-commerce platforms, digital marketing tools, and other innovative solutions to stay competitive. The lack of awareness and skills among entrepreneurs is one of the major barriers hindering their ability to tap into the digital economy.
"Only 20% of UMKM players have started to use digital technologies," said a senior industry official. "We need to boost this number significantly, so that they can take advantage of the growth opportunities in the e-commerce sector."
Government initiatives, such as the 'E-Commerce and Digital Economy' program under the Ministry of Trade and Industry, aim to bridge this gap by providing training programs, mentorship schemes, and financial support for UMKM players.
However, critics argue that more needs to be done to address the structural issues that hinder UMKM adoption of digital technologies. "We need a holistic approach that not only focuses on technology, but also on building the capacity and resilience of our entrepreneurs," said an analyst.
The government's vision is for Indonesia to become a 'Digital Economy' nation by 2025, with UMKM players playing a crucial role in driving this growth. But it will require significant efforts from both policymakers and private sector players to achieve this goal.
"The key challenge lies in translating the government's ambitions into concrete actions," said an industry expert. "We need to see more tangible investments in digital infrastructure, training programs, and incentives for UMKM players."