Mutualism Between SMEs and Digital Startups to Drive Transformation On Track

Last Wednesday, (12/8), was celebrated as the 2020 National UMKM Day. Several virtual events entitled empowering small businesses were held by various organizers, both public and private. Apart from these symbolic aspects, Indonesian SMEs deserve the attention of various parties. This sector offers agile solutions in driving the national economy. Involving various components of society at large.

The number of SME players has consistently increased by the year. According to BPS data, there have been 64.2 million business units since 2018. They provide around 60.3% contribution to gross domestic product (GDP) and absorb 97% of the national workforce. Kemenkop data shows, the government is targeting at least 2 million SMEs to go digital this year. As of August 2020, the number is still around 1.4 million, around 2% of the total.

Embracing SME digitization

There are many programs held by various parties for SMEs to finalize digital strategies, including the government and the private sector. Digitization is clearly not just jargon, it allows SMEs to strengthen the foundations of business. The goal is very clear, expand business prospects and open new market share.