UKM Center FEB UI Contributes to Support Digitalization of Indonesian MSMEs
Nino Eka Putra ~ Humas FEB UI
JAKARTA – UKM Center FEB UI as an institution under the auspices of FEB UI contributes to provide solutions to the problems of sustainable development (particularly sustainable development), especially those relating to empowering SMEs and entrepreneurship development.
It is undeniable that MSMEs can increase economic growth in Indonesia and also prove to be a vehicle for empowerment for the underprivileged and contribute to economic growth in Indonesia.
Seeing this condition, UKM Center FEB UI held an Outlook MSME Sharing Session with the theme “Do it Digital” to find out the development & potential role of MSMEs for the Indonesian economy in 2020 and was opened by Nining Indroyono Soesilo as a Lecturer at the Department of Economics that took place in Bumbu Desa , Cikini, Central Jakarta, on Friday (2/14/2020).
Head of UKM FEB UI Center, T.M. Zakir Sjakur Machmud explained that at a glance the current MSME in Indonesia with a ratio of 98.68 is a micro level business with an average turnover of Rp.83.7 million / year. Consists of 60% of men and 13% who have used the internet in their daily activities. In addition, only 0.1% of them export abroad and 90% sell in the same district, and only 5% have a grade mindset.
The main sector shows that 49.9% are in the agricultural sector where there are 26 million business operators (Agriculture Census 2013). Wholesale and retail trade are the second largest with almost 23.2% or 12 million business operators (2016 Economic Census). And as much as 8.5% or 4 million business people are engaged in the sector of providing accommodation, food & drink.
“At this time, MSMEs need to digitize to encourage levels of increase in terms of reaching more consumers, enlarging the scale more easily through fintech lending, encouraging efficiency and more appropriate decision making with the adoption of technology that encourages recording,” Zakir said.
Meanwhile, at the same time, marketing digitalization offers benefits to increase marketing access and MSME competitiveness. The main focus of digitizing MSMEs is on finance, marketing, HR & management, innovation, and institutions.
From the marketing aspect, 42% of digital marketing awareness increased through small businesses that have websites for new promotions, while e-mail usage was 9.4% (Bank Indonesia, 2015).
“As a comparison, small businesses that have websites as promotions in the Philippines and Vietnam are already more than 25%, while the use of e-mail is more than 45% (Bank Indonesia, 2015). Indonesia’s MSME contribution to exports by 14.3% is different from the Philippines to exports which are more than 28% and in Vietnam to exports it has reached 20%,” he said.
On the other hand, the issue of the financial aspect when viewed in terms of financing that bank financial institutions really need additional information about MSME creditworthiness. In addition, MSMEs are often perceived as high-risk businesses, so they are often subject to high interest rates. Thus, the main factor of MSMEs must be ready to adopt electronic payment through word of mouth information, trust, needs, usefulness, costs, and social influence.
“Many MSME digitalization programs have been carried out by various parties, both government and private, such as policies to increase broadband access, expand electronic payments / e-payments, expand access to investment, implement digital mindsets to be digital minded. Therefore, the contribution of UKM Center FEB UI to go-digital MSMEs in Indonesia through scientific studies on the digitalization of MSMEs and conducting various training and mentoring,” he concluded. (Des)