The Foundation of a Successful Digital Transformation Strategy

Accommodating micro, small and medium enterprises or private MSMEs to market their goods/services online is one of the policies to address their market development needs. More importantly, MSME actors need adequate digital literacy to be successful in online marketing. The digitization of MSMEs is a partial policy to answer the complexity of the challenges they face. In the previous year, the narrative of digitization towards MSMEs became more and more resounding. In fact, in his state speech commemorating the 76th Anniversary of the Republic of Indonesia, President Joko Widodo said the government has been encouraging the development of the digital economy ecosystem, one of which is digitization MSMEs.

MSMEs must immediately enter the digital ecosystem by staying focused on developing products that suit consumer needs. To transform into a digital ecosystem, they need help and support from the government, businesses, and educational institutions. The Ministry of Tourism and Creative Economic also emphasizes the importance of a digital economy ecosystem for MSME actors, which will bring the nation’s sovereignty even more firmly. MSMEs connected to digital platforms have only reached around 12 million units. Limited human resources cause not all MSMEs to sell through digital media, so they need partners to enter the digital ecosystem.

Digitalization plays a vital role in accelerating economic recovery and encouraging Indonesian MSMEs to become stronger and more empowered. As many as 80 percent of MSMEs connected to the digital ecosystem have better resilience. Of that amount, 74.1 percent rely on e-commerce, with a business profile of 51 percent as resellers and only 11 percent as producers. The ministry/institution has also set a target so that 30 million MSMEs can go digital or enter the digital market by 2023. Apart from advancing to class, another impression is that digitizing MSMEs is the only way to survive competition during social restrictions due to the COVID19 pandemic. To provide related information, the JARI Foundation will hold training for MSMEs focused on the South Tangerang area with the theme “The Foundation of a Successful Digital Transformation Strategy.”