Indonesian Chamber of Commerce boosts MSMEs through digital ecosystem development

The Indonesian Chamber of Commerce and Industry (Kadin) is intensifying efforts to elevate micro, small, and medium enterprises (MSMEs) by bolstering the digital ecosystem. This initiative aims to enhance business capacity, broaden access to technology and financing, and foster a more inclusive digital market, enabling MSMEs to compete effectively in the digital economy.

Nurdin Halid, Vice Chairman of Kadin Indonesia for Cooperatives and MSMEs, stated that Indonesia's path to becoming a developed nation hinges on the growth of its MSMEs. Kadin's dual mission involves protecting these businesses and promoting their development. "First is the aspect of protection. How do we ensure that 64.2 million MSMEs can survive in healthy competition in the era of free markets? Second is the aspect of development, which is how to encourage MSMEs to increase their capabilities, expand markets, strengthen technology, and ultimately be able to move up a class," he explained.

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First is the aspect of protection. How do we ensure that 64.2 million MSMEs can survive in healthy competition in the era of free markets? Second is the aspect of development, which is how to encourage MSMEs to increase their capabilities, expand markets, strengthen technology, and ultimately be able to move up a class.

Kadin has identified key challenges facing MSMEs, including limited access to capital, technology, skilled human resources, product standards, and market access. Consequently, leveraging technology is seen as crucial for accelerating MSME transformation. Nurdin outlined strategies to strengthen the digital ecosystem, such as enhancing digital foundations and capacity through collaboration between government, Kadin, universities, state-owned enterprises, tech companies, and financial institutions.

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The support must be adjusted to the maturity level of each business because the needs of micro-enterprises are different from those of small and medium enterprises.

These collaborations will provide practical and sustainable training covering digital financial recording, marketing, inventory management, payment systems, and artificial intelligence utilization. The support will be tailored to each business's maturity level, recognizing that the needs of micro-enterprises differ from those of small and medium ones. Further strategies include expanding MSME access to technology, financing, and digital infrastructure, building a fair and inclusive digital market ecosystem, and reinforcing legal protection and digital security for MSMEs.

This reinforcement involves educating and assisting MSMEs on transaction security, personal data protection, intellectual property rights, electronic contracts, and digital payment system security. "At the same time, the state needs to ensure that there are easily accessible complaint channels, rapid responses to digital crimes, and law enforcement that provides certainty," Nurdin added. Raden Tedy, Vice Chairman of Kadin Indonesia for Entrepreneurship, noted that International MSME Day on June 27 serves as a momentum to strengthen MSMEs as the foundation of an inclusive economy.

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At the same time, the state needs to ensure that there are easily accessible complaint channels, rapid responses to digital crimes, and law enforcement that provides certainty.