Government Encourages Empowerment of MSMEs Through Digitalization

By: Naomi Leah Christine )*

Digitalization of MSMEs is one of the important steps in creating economic equality in Indonesia. By utilizing technology, MSMEs can more easily access the global market and increase their competitiveness.

The government, through various initiatives carried out by BUMN, continues to strive to accelerate the digital transformation of this sector in order to encourage more inclusive economic growth. This step is not just a short-term strategy, but is also part of Indonesia’s grand vision in facing the era of the increasingly rapid digital economy.

PT Bank Rakyat Indonesia (Persero) Tbk (BRI) shows its commitment to MSME digitalization by holding the BRI Microfinance Outlook 2025 at ICE BSD and the BRI UMKM EXPO(RT) 2025 which aims to help MSMEs move up to the global level. This step was taken so that small business actors not only develop domestically, but can also compete in the international market.

Chief Economist of the Asian Development Bank (ADB), Albert Francis Park, assessed that digitalization is the main key to overcoming limited capital and market access which have been the main obstacles for MSMEs. With digital technology, MSMEs can operate more efficiently, reach a wider market, and reduce operational costs which were previously obstacles.

As part of this transformation, BRI has developed a digital ecosystem such as BRI LinkUMKM, which is now used by around 8.9 million business actors. With the presence of this platform, MSME actors have a place that can help them in making transactions more easily and efficiently. In addition, BRI also manages 54 Rumah BUMN to support the formation of the Digital Economy Ecosystem and presents PARI (Integrated Commodity Platform), which has currently been used by more than 85,298 users.

BRI President Director, Sunarso, emphasized that the merger of BRI Microfinance Outlook and BRI UMKM EXPO(RT) 2025 is part of an effort to support the inclusive economic policy initiated by President Prabowo Subianto. With the right strategy, MSMEs are expected to become the main pillar in sustainable economic growth.

On the other hand, PT Telkom Indonesia (Persero) Tbk (Telkom) also contributes to supporting the digitalization of MSMEs through the MSME Digital Market (PaDi) platform. This innovation has received appreciation at the 2024 BUMN Awards with the Outstanding Contribution to MSME Economic Empowerment award.

PaDi UMKM is a B2B marketplace that connects MSMEs with procurement in BUMN and the private sector, thus facilitating market access for small business actors. With the presence of this platform, MSMEs that previously had difficulty collaborating with large companies now have wider opportunities.

In addition to helping MSMEs reach the market, PaDi UMKM also provides solutions for BUMN and private companies in selecting vendors and simplifying the procurement administration process. In its efforts to continue to innovate, Telkom launched the e-invoice feature in October 2024.

This feature increases transparency and efficiency in reporting value added tax (VAT), so that MSMEs can more easily fulfill their tax obligations. The impact is not only felt by business actors, but also for the national economy which is increasingly transparent and well-structured.

PaDi UMKM also offers a financing scheme that allows business actors to obtain loans of up to IDR 5 billion by simply using Purchase Orders (PO) and Invoices as collateral. This scheme is very helpful in fulfilling orders on time without disrupting the cash flow of MSMEs.

With this financing solution, MSMEs no longer need to face capital difficulties in fulfilling large orders which were previously a challenge for them. EVP Digital Business and Technology Telkom, Komang Budi Aryasa, emphasized that PaDi UMKM is not just an ordinary marketplace, but also a digital solution that supports business growth and improves the sustainability of the MSME economy in Indonesia.

In his remarks at the 2024 BUMN Awards, Deputy Minister of BUMN, Kartika Wirjoatmodjo, stated that this award is a motivation for BUMN to continue transforming in order to realize the vision of Indonesia Emas 2045.

The digital transformation efforts carried out by BUMN have not only had an impact on the operational efficiency of state-owned companies, but have also had a significant impact on small and medium business actors. To date, hundreds of thousands of MSMEs have joined PaDi UMKM with total transactions reaching IDR 7 trillion, and this number continues to grow along with the increasing adoption of digital in the MSME sector.