Heaptalk, Jakarta — Indonesia’s Minister of Cooperative and SME, Teten Masduki, delivered that MSME players can develop their businesses more significantly, one of which is through the implementation of an omnichannel strategy. Delivering a disruption of the digital transformation ecosystem, he also perceived this strategy contained tremendous opportunities for sellers to reach a broader market.
“The diversity of MSME products is increasingly recognized and appreciated by the Indonesian people. The government has also taken various steps to support and protect local MSMEs, including a 40% of Indonesia’s State Budget (APBN) allocation for spending on local products. On the other hand, strategic efforts to protect local MSMEs can also be realized through matured regulations, covering aspects of technology, platforms, and types of distribution.” added Teten during the GDP Venture’s Power Lunch related to the Omnichannel Trends: Meeting the Modern Shopper’s Preferences.
Through official e-commerce platforms, Teten revealed they can reach more comprehensive consumers, increase product popularity, and open new opportunities. Moreover, according to him, the contribution of offline-online sales channels, which have attracted consumers’ attention with quality local products, can also increase the income of MSME players.
For this reason, the Minister affirmed the government continues to arrange mature regulations on technology on digital trading platforms, including data regulation, to avoid monopolistic practices carried out by global marketplace platforms. By setting online trading regulations, Teten emphasized that the Indonesian government is not anti-foreign. He claimed that this matter is a strategic effort to protect local MSMEs as one of the factors driving Indonesia’s economic growth.
“Our society must think about protecting the domestic market. The government realized many consumers prefer to purchase goods at reasonable prices. Also, we perceived multiple affiliates or resellers obtained plenty of benefits from the global marketplace platform. Nevertheless, if local production and our economy are paralyzed, people will lose their jobs, which will also impact decreasing purchasing power. We have to think about this point.” Teten affirmed.
Even though supporting MSMEs who aggressively market their products through omnichannel channels, Teten emphasized that business actors must choose platforms carefully following their production capacity. He observed that MSMEs with small capabilities have several matters that must be strengthened to meet market capacity quickly nationally.
