Minister: Over 90 Percent of MSMEs Yet to Utilise AI

Minister of Micro, Small, and Medium Enterprises Maman Abdurrahman has stated that more than 90 percent of MSME operators in Indonesia have not yet utilised artificial intelligence (AI) technology optimally in running their businesses. Speaking in Jakarta on Thursday, he noted that although the general adoption rate of AI in Indonesia has reached 92 percent, the vast majority of MSMEs still do not leverage the technology in their business processes. He said this gap must be addressed through government intervention and collaboration with various stakeholders so that MSMEs can utilise technology to increase productivity and competitiveness. “It is almost impossible for us to manage tens of millions of micro, small, and medium enterprises in the country using conventional patterns and methods. We must step in to optimise the use of technology,” he said while opening the National Policy Convening Indonesia: Charting the Blueprint for AI-Inclusive Indonesia forum in Jakarta on Wednesday (8/7). 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 realising economic and social justice through equitable access to technology. “AI is no longer a technology of the future, but has become a necessity to improve efficiency, productivity, and competitiveness,” he said. To support this effort, the Ministry of MSMEs is developing a platform called Sapa UMKM, which will serve as a single database and a public service application for micro, small, and medium enterprise operators. Through this platform, various government programmes such as Kredit Usaha Rakyat (KUR), Makan Bergizi Gratis (MBG), business partnerships, downstreaming, business formalisation, as well as training, financing, and marketing services will be integrated into one digital ecosystem. The integration is expected to make services for MSMEs more targeted, easily accessible, and able to reach business operators in various regions of Indonesia. In addition, the Ministry of MSMEs has announced a policy of a 50 percent discount on marketplace service fees for micro and small enterprises registered in the SAPA UMKM system as part of efforts to improve business competitiveness. The government is also collaborating with universities to develop business incubators that will be integrated with Sapa UMKM to expand mentoring and technology utilisation for MSME operators.