Great! There are 17.2 million MSMEs That Been Digitized

A total of 17.2 million MSME players have been digitized since January 2022. This growth was strongly driven by digital transformation during the Covid-19 pandemic. This achievement was welcomed by the Minister of Finance Sri Mulyani.

“We believe that digitalization will make MSME transactions easier to do, allow them to access new markets, and also allow MSMEs to run their business more efficiently,” said Sri Mulyani at the 6th Annual Islamic Finance Conference (online) (24/ 8/2022).

According to Tirto.co.id, the government targets the digitization of MSMEs to reach 40 million users by 2024. This target is also driven by financing the construction of the Palapa Ring satellite and Based Transceiver Station (BTS) to connect the internet in 20 thousand villages in Indonesia.

The digitization of MSMEs is expected to make it easier for MSME actors to access financing. It is recorded that around 80 million MSMEs do not have access to formal financing. In fact, 46 million MSMEs still need additional financing for working capital.

Sri Mulyani explained that the government had provided MSME financing platforms such as People’s Business Credit and Ultra Micro Financing which until the first semester of 2022 had been distributed to 3.79 million MSMEs.

“We also provide financing allocations in the sharia scheme which can also be an option for MSMEs. Of the total KUR allocation in 2022 of around Rp. 313.7 trillion, we have allocated for financing (KUR) the sharia scheme of Rp. 20.7 trillion,” she added.

In addition, the central government, State-Owned Enterprises (BUMN), regional governments, and large private businesses have also contributed to increasing the capacity of MSMEs, and encouraging them to digitize.

“Government support will certainly not be enough to support and empower MSMEs, so we also need to develop strategies and improve synergies and coordination with the public sector, academia, and the private sector,” she explained.