Indonesian Government Enhances UMKM Support Through Digitalization

Strengthening Competitiveness and Market Access

The Indonesian government is stepping up its efforts to support the growth of UMKM (Micro, Small, and Medium Enterprises) through various initiatives. Recently, the Minister of Trade, Budi Santoso, met with the Minister of UMKM, Maman Abdurrahman, to discuss ways to strengthen the competitiveness of UMKM and expand their market access ¹

The meeting highlighted the government's commitment to creating a more favorable environment for UMKM to thrive. One of the key initiatives discussed was the 'UMKM BISA Ekspor' (UMKM Can Export) program, launched by the Ministry of Trade to help UMKM increase their export capabilities. The ministers also emphasized the need to protect local products from illegal imports, particularly used clothing and unlabeled goods, by registering local brands and strengthening the supply chain ¹

Digitalization Efforts Through E-commerce Platforms

In a related development, e-commerce platform Shopee has been actively supporting UMKM through its digital training programs. The company has trained millions of UMKM through its online campus, with over 400 training modules available. The government's Deputy Minister for Small Enterprises, Temmy Satya Permana, praised Shopee's efforts, noting that over 25 million UMKM have adopted digital technology and connected with the digital ecosystem ²

Shopee's online campus has reached 514 regencies/cities across Indonesia, providing training that ranges from basic business management to advanced marketing strategies. The platform has also introduced various initiatives, including the 'Sukses UMKM Baru' (Successful New UMKM) program, which offers incentives of up to Rp2 million for new UMKM sellers. Additionally, Shopee's 'Ekspor Shopee 2.0' program provides flexibility for UMKM to manage their international sales ²

Collaborative Efforts for UMKM Growth

The collaboration between the government and e-commerce platforms like Shopee is seen as a positive step towards empowering UMKM. By providing access to digital training and market opportunities, these initiatives aim to help UMKM 'level up' and become more competitive in both domestic and international markets. The government's focus is not just on increasing the number of UMKM but on improving their quality and sustainability through digitalization and better business practices.

As noted by the officials, protecting local producers and ensuring a fair business environment remains a priority. The government and private sector are working together to create a more inclusive and productive ecosystem for UMKM, which is crucial for Indonesia's economic development.