Strengthening the Digital Ecosystem and Partnerships to Expand Market Access

Deputy Minister Bagus Rachman of the Ministry of Micro, Small, and Medium Enterprises (MSME) emphasised the need to strengthen the digital ecosystem and business partnerships to help MSMEs scale up. He stated that MSMEs contribute significantly to the national economy, but current challenges include enhancing value addition, creativity, productivity, and connectivity to enable growth and competitiveness in broader markets. “97% of Indonesia’s MSMEs are still at the micro level. Therefore, the priority is to encourage MSME entrepreneurs to scale up through collaboration and strengthening the business ecosystem,” he said in an official statement on Saturday (30 May). He praised various digital initiatives and local platforms that bolster MSME product marketing and create opportunities for domestic products to enter larger market chains. According to him, synergy between government, communities, digital platforms, the business sector, and local authorities is crucial for expanding market access for MSME entrepreneurs. Bagus explained that market opportunities for MSMEs are substantial, including government procurement of goods and services worth approximately Rp1.1 trillion, with a minimum 40% allocation for MSME products. Additionally, the PaDi UMKM platform, developed by state-owned enterprises (SOEs), is designed to expand market access for MSMEs across regions. “There is a potential government procurement of goods and services worth Rp1.1 trillion, with 40% allocated for MSME products. Moreover, the SOE-owned PaDi UMKM platform can be utilised. Therefore, local governments must encourage MSME entrepreneurs in their regions to seize available market opportunities,” Bagus said. During the event, Bagus also introduced the development of SAPA UMKM, a superapp being built by the Ministry of MSMEs to provide integrated services for MSME entrepreneurs. The platform is designed to simplify access to integrated business services, including business legitimacy, certifications, financing, and business mentoring and development. “Through SAPA UMKM, MSME entrepreneurs’ various needs will be connected through a single portal, from NIB (Business Identification Number), OSS (Online Single Submission), halal certification, to financing and export access,” he said. In addition to strengthening digitalisation, the Ministry of MSMEs is also developing a cluster-based business partnership ecosystem that connects micro, small, medium, and large enterprises through the MSME holding scheme. According to Bagus, this approach is expected to create market aggregation, improve product standardisation, and strengthen financing and marketing access for MSME entrepreneurs across various sectors. “This scheme is anticipated to enhance MSME competitiveness through integrated and sustainable business development,” he said. Bagus stressed that the Ministry of MSMEs will continue to act as a collaborator and integrator linking small-scale producers with broader markets. This step is part of efforts to strengthen the national economic foundation and support the realisation of Indonesia’s Golden Vision 2045. “MSMEs must connect with larger ecosystems to grow sustainably and become a vital part of national economic development,” Bagus said.