Kadin Accelerates MSME Upgrading Through Digital Ecosystem Strengthening
The Indonesian Chamber of Commerce and Industry (Kadin) is strengthening efforts to encourage micro, small, and medium enterprises (MSMEs) to scale up their businesses through the reinforcement of the digital ecosystem. The move is being carried out by strengthening the capacity of business actors, expanding access to technology and financing, and building a more inclusive digital market ecosystem so that MSMEs can compete in the digital economy era.
Nurdin Halid, Coordinating Vice Chairman for Cooperatives and MSMEs at Kadin Indonesia, stated that Indonesia’s path to becoming a developed nation depends heavily on the ability of micro-enterprise actors to grow into small and medium enterprises. According to him, Kadin has two main missions as a strategic partner of the government: providing protection while simultaneously encouraging MSME development.
“The first is the protection aspect. How do we ensure that 64.2 million MSMEs can survive in healthy competition in the free market era. The second is the development aspect, namely how to encourage MSMEs to improve their capabilities, expand their markets, strengthen technology, and ultimately be able to upgrade,” he said.
He explained that various main challenges for MSMEs have been mapped, ranging from limited access to capital, technology, human resource quality, product standards, to market access. Therefore, the utilisation of technology is considered one of the keys to accelerating MSME transformation.
Nurdin outlined several strategies to strengthen the MSME digital ecosystem, including reinforcing digital foundations and capacity through collaboration between the government, Kadin, universities, state-owned enterprises, technology companies, and financial institutions to deliver practical and sustainable training. “Training ranges from digital financial recording, marketing, inventory management, use of payment systems, to the utilisation of artificial intelligence. Mentoring must be tailored to the maturity level of each business because the needs of micro-enterprises differ from those of small and medium enterprises,” he explained.
The next strategy is to expand MSMEs’ access to technology, financing, and digital infrastructure, build a fair and inclusive digital market ecosystem, and strengthen legal protection and digital security for MSME actors. Furthermore, strengthening legal protection and digital security for MSMEs involves reinforcing education and mentoring regarding transaction security, personal data protection, intellectual property rights, electronic contracts, and securing digital payment systems.
“At the same time, the state needs to ensure the availability of easily accessible complaint channels, a rapid response to digital crimes, and law enforcement that provides certainty,” Nurdin stated.
Meanwhile, Raden Tedy, Vice Chairman for MSME Entrepreneurship at Kadin Indonesia, said that the commemoration of International MSME Day on 27 June serves as a momentum to strengthen the role of MSMEs as a foundation for an inclusive and sustainable economy.