Heaptalk, Jakarta — Ministry of Industry is developing a program to spur digitalization in small and medium industries (industry kecil menengah-IKM) called e-Smart IKM. Within the Ministry, digital industrial transformation is included in the Making Indonesia 4.0 agenda which was launched in 2018, covering large industries as well as small and medium industries.
In the Making Indonesia 4.0 road map, small and medium industries are advised to leverage technological developments through mastering digital literacy on the marketing and sales side. Additionally, small and medium industries are expected to utilize technology on the manufacturing side to increase added value and product competitiveness.
“We have an e-Smart IKM program that helps small and medium industry players to expand market access through digital marketing. We collaborate with well-known marketplaces such as Tokopedia, Shopee, BliBli, BukaLapak, and also the Indonesian E-commerce Association (idEA),” Director General of Small, Medium, and Miscellaneous Industries (IKMA), Ministry of Industry, Reni Yanita in Jakarta.
Further, the e-Smart IKM program is aligned with the spirit of the Proudly Made in Indonesia National Movement (Gernas BBI) which was launched by President Joko Widodo. Reni conveyed, “Gernas BBI is a joint movement between the government, business actors, and the community to love and buy local products,” Reni conveyed.
e-Smart IKM facilitates digital transformation
According to her, digital marketing is a skill that must be mastered by any business actor in the modern era. She explained, “Driven by the Covid-19 pandemic that hit Indonesia and the increasing penetration of digital technology in Indonesia, consumers are experiencing changes in shopping tastes, from conventional shopping by visiting stores to online shopping.”
Based on a report entitled ‘Digital 2023: Indonesia’, there are 212 million internet users in Indonesia, with internet penetration reaching 77% in January 2023. Statista Market Insights also reports that there are 179 million e-commerce users in Indonesia in 2022, and is estimated to reach 196 million in 2023. Meanwhile, the value of Indonesian e-commerce transactions, as forecasted by Bank Indonesia, has the potential to reach Rp572 trillion by the end of 2023.
For this reason, the e-Smart IKM program is essential to facilitate digital transformation in small and medium industries. Reni added, “If you look at the data, this is actually an opportunity that must be taken advantage of. Now with only a smartphone, business actors can expand their markets and boost sales without having to spend a lot of money and effort compared to conventional marketing methods. Hence, this is affordable, easy, effective, and suitable for small and medium industries.” (Translated by Sinta)
