Indonesian Political, Business & Finance News

Minister: Over 90 Percent of MSMEs Yet to Utilise AI

| Source: ANTARA_ID Translated from Indonesian | Technology
Minister: Over 90 Percent of MSMEs Yet to Utilise AI
Image: ANTARA_ID

Jakarta (ANTARA) - Minister of Micro, Small and Medium Enterprises (MSMEs) Maman Abdurrahman has said that more than 90 per cent of MSME players in Indonesia have yet to make optimal use of artificial intelligence (AI) technology in running their businesses.

Speaking at a press conference in Jakarta on Thursday, Maman said that although the general rate of AI adoption in Indonesia has reached 92 per cent, more than 90 per cent of MSME players still have not utilised the technology in their business processes.

He said the gap needs to be addressed through government intervention and collaboration with various stakeholders so that MSME players can harness technology to boost their productivity and business competitiveness.

“It is almost impossible for us to serve tens of millions of micro, small and medium enterprises across the country using conventional patterns and methods. We must be present to optimise the use of technology,” he said when opening the National Policy Convening Indonesia: Charting the Blueprint for AI-Inclusive Indonesia forum in Jakarta on Wednesday (8 July).

According to him, the use of AI is one of the strategies to accelerate the digital transformation of MSMEs while supporting the government’s vision of achieving economic and social justice through equitable access to technology.

“AI is no longer a technology of the future, but has become a necessity for improving efficiency, productivity and competitiveness,” he said.

To support these efforts, he said the Ministry of MSMEs is developing the Sapa UMKM platform, which will serve as a single database as well as a public service application for micro, small and medium enterprise players.

Through the platform, various government programmes such as the People’s Business Credit (KUR), Free Nutritious Meals (MBG), business partnerships, downstreaming, business formalisation, as well as training, financing and marketing services will be integrated into a single digital ecosystem.

This integration is expected to make services for MSME entrepreneurs more targeted, easily accessible and capable of reaching business players across various regions of Indonesia.

In addition, the Ministry of MSMEs has announced a policy of a 50 per cent discount on marketplace service fees for micro and small businesses registered in the SAPA UMKM system, as part of efforts to boost business competitiveness.

Maman added that the government is also partnering with universities to develop business incubators that will later be integrated with Sapa UMKM to expand mentoring and technology adoption for MSME players.

The National Policy Convening Indonesia: Charting the Blueprint for AI-Inclusive Indonesia forum is a collaboration between the Ministry of MSMEs, Kumpul Impact, the ASEAN Foundation, the Asian Venture Philanthropy Network (AVPN) and several stakeholders to support the sustainability of the AI for MSME Advancement in ASEAN (AIM ASEAN) programme in Indonesia.

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