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DIGITALIZATION OF MSMEs IS THE KEY TO CAPITALIZING ON THE DEMOGRAPHIC BONUS

DIGITALIZATION is an important thing to do in an effort to encourage Micro Small and Medium Enterprises (MSMEs) to “move up in class” while creating jobs and business opportunities for the community.

According to the Minister of Tourism and Creative Economy, Sandiaga Uno recently said that 97% of employment in Indonesia is contributed by MSMEs. Therefore, digitalization is a very important thing for MSME players to do to be able to ‘move up in class’.

“Moreover, Indonesia will get a demographic bonus, namely that 70% of Indonesia’s population will be in the productive age (15-64 years) in 2045. MSMEs will of course have a big role in capitalizing on this bonus in absorbing labor,” he said.

He explained, with digitalization, our economy will become more efficient and add more value. And our target of being able to capitalize on the demographic bonus in the next 5 to 10 years can be accelerated by digitalization in the MSME sector.

For this reason, Sandiaga appreciates the implementation of “Digital Heroes of MSMEs 2023” which was initiated by the Special Staff of the President of Indonesia, Putri Tanjung, which aims to attract digital innovators who are committed to helping MSMEs move up in class and become more empowered with various digital innovations and solutions and become part of the national entrepreneurial development ecosystem.

“We have to facilitate these 10 finalists to be able to scale up because MSMEs are the ones who will bring this nation up a class towards a Golden Indonesia 2045. In the creative economy sector itself there are three subsectors with the biggest contributions, namely culinary, crafts and fashion. The value of the contribution “the culinary subsector alone reaches more than 40%,” he said.

Minister Sandiaga hopes that collaboration between the government, the private sector and other parties can continue to support the development of MSMEs as the backbone of economic improvement and job creation in the community.

“How MSMEs can be sustainable, of course, is with the principles of a green economy where digitalization is included. MSME actors must be able to continue to innovate, adapt and collaborate with the spirit of fast movement, moving together and working on all existing potential, including online in front of us,” said Sandiaga.

Meanwhile, the President’s Special Staff who is also the initiator of “2023 MSME Digital Heroes”, Putri Tanjung, said that in selecting the best MSMEs in this event she looked at several things starting from business sustainability and its impact on the environment, especially on MSME businesses.

“We select these innovators based on many things. We look at the founder first, then the business growth, then sustainability, cash flow and profitability and the impact of how many MSMEs can be helped and in the future the multiplier effects such as what,” Putri Tanjung concluded. [traveltext.id]