MINISTER of Cooperatives and SMEs (Menkop UKM) Teten Masduki emphasized the importance of education and literacy for consumers in the digital economy market. The goal is so that domestic consumers are not easily fooled by cheap imported products, but it turns out to be no better than domestic products.
“Our consumers in the market online “It’s so easy to be tempted by imported products because of the cheap prices. So, many of them are deceived by the quality of the products,” said Teten at the National MSME Day commemoration event, Sunday (8/9).
Teten believes that if Indonesian consumers continue to be given good education and literacy, marketing of quality local products will increase.
Apart from that, he also acknowledged that the rapid growth of the digital economy has also resulted in increasingly tight competition with large companies and platforms. e-commerce international.
“This is also what creates challenges, especially in pricing practices. predatory” he said.
In fact, he continued, the dominance of imported products on digital platforms is a major issue with around 90% of goods sold coming from imports. This reduces the opportunity for local MSMEs to compete in the global market.
Also read: Digital Transformation is the Key to MSME Victory in the Pandemic Era
“Then the government seeks to protect MSMEs through the implementation of Trade Ministerial Regulation Number 31 of 2023, which aims to provide comprehensive protection for MSMEs in the digital economy era,” he added.
As is known, based on Micro Small Medium Enterprise (MSME) Empowerment Report in 2022, it was noted that digitalization had provided major benefits for improving the performance of MSME businesses.
“Sales increased by an average of 84.2%, operational effectiveness increased by 73%, market expansion reached 62.8%, and cost efficiency was 50.7%,” he explained.
Also read: President: Target of 30 Million MSMEs Entering the Digital Ecosystem Must Be Achieved
Therefore, the Minister of Cooperatives and SMEs hopes that the private sector, one of which is Grab Indonesia, will remain consistent in prioritizing domestic products, collaborating more closely with MSMEs, the government, and other private sectors.
On the same occasion, Grab Indonesia Managing Director Neneng Goenadi stated that her party will continue to focus on educational and literacy steps to help MSMEs market their products on a digital platform that is safe, fast, and able to reach a wide market.
“Including a lot of strategy training, marketing, and so on, in an effort to support the development of MSMEs,” he explained.
Also read: Cooperatives and MSMEs Must Transform to Digital
Since 2020, Neneng continued, precisely during the Covid-19 pandemic, there have been 2.3 million job opportunities in the Grab application. “In fact, Rp1 trillion has been distributed to 25 thousand MSME actors through the Grab Modal application,” she said.
Neneng emphasized that Grab will continue to improve these steps and efforts so that more MSMEs can move up a class, to be able to play in the export market. In addition, Neneng also appreciated the collaboration with the Ministry of Cooperatives and SMEs over the past five years in an effort to support the empowerment of MSMEs in Indonesia through digitalization.
“We have collaborated since the Covid-19 pandemic occurred in 2020 until now when MSME businesses have experienced increasingly significant growth through digitalization or marketing. online” he concluded. (J-3)
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Table of Contents
Strengthening Consumer Literacy in the Era of Digital Economic Market
As the digital economy continues to grow and shape the way we live and do business, it is essential to strengthen consumer literacy in this era. This is the message emphasized by Minister of Cooperatives and SMEs, Teten Masduki, at the National MSME Day commemoration event on Sunday, September 8, 2024.
The Importance of Education and Literacy
Minister Teten Masduki highlighted the need for education and literacy among consumers in the digital economy market. He noted that domestic consumers are often tempted by cheap imported products, which may not necessarily be of better quality than domestic products. By providing good education and literacy, Minister Teten hopes to increase the marketing of quality local products.
Challenges in the Digital Economy
The rapid growth of the digital economy has resulted in increasingly tight competition with large companies and international e-commerce platforms. Minister Teten Masduki acknowledged that this has created challenges, particularly in pricing practices, which can be predatory. The dominance of imported products on digital platforms, with around 90% of goods sold coming from imports, reduces the opportunity for local MSMEs to compete in the global market.
Government Support for MSMEs
To address these challenges, the government has implemented Trade Ministerial Regulation Number 31 of 2023, which aims to provide comprehensive protection for MSMEs in the digital economy era. This regulation is crucial in ensuring that MSMEs can compete fairly and thrive in the digital market.
Benefits of Digitalization
Digitalization has provided significant benefits for improving the performance of MSME businesses. According to the Micro Small Medium Enterprise (MSME) Empowerment Report in 2022, sales increased by an average of 84.2%, operational effectiveness increased by 73%, market expansion reached 62.8%, and cost efficiency was 50.7%.
Collaboration between Private Sector, Government, and MSMEs
Minister Teten Masduki called on the private sector, including Grab Indonesia, to prioritize domestic products, collaborate more closely with MSMEs, the government, and other private sectors. Grab Indonesia Managing Director, Neneng Goenadi, emphasized the company’s commitment to supporting MSMEs through educational and literacy steps, including strategy training, marketing, and other efforts.
Grab’s Contribution to MSME Development
Since 2020, during the Covid-19 pandemic, Grab has created 2.3 million job opportunities in its application. Moreover, Rp1 trillion has been distributed to 25,000 MSME actors through the Grab Modal application.
Conclusion
strengthening consumer literacy in the era of digital economic market is crucial for the growth and development of MSMEs. The government, private sector, and MSMEs must work together to provide education and literacy, support MSMEs, and promote the use of digital platforms to access a wider market. By doing so, we can empower MSMEs to compete fairly and thrive in the digital economy.
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Cooperatives and MSMEs Must Transform to Digital [[2]]
* Momentum to Assess MSMEs that have Resilience [[3]]
Indonesia digital economy
Title: Boosting Indonesian SMEs in the Digital Economy: Empowerment through Education and Literacy
The Indonesian government has emphasized the importance of education and literacy for consumers in the digital economy market to ensure that domestic consumers are not easily fooled by cheap imported products. According to Minister of Cooperatives and SMEs Teten Masduki, good education and literacy will lead to increased marketing of quality local products [[1]]. This is crucial as the rapid growth of the digital economy has resulted in increasingly tight competition with large companies and platforms, making it challenging for local MSMEs to compete in the global market [[1]].
The dominance of imported products on digital platforms is a major issue, with around 90% of goods sold coming from imports [[1]]. This highlights the need for the government to protect MSMEs through the implementation of Trade Ministerial Regulation Number 31 of 2023, which aims to provide comprehensive protection for MSMEs in the digital economy era [[1]].
Indonesia is home to a vast number of SMEs, with 64,194,056 SMEs reported in 2019, making up a significant portion of the country’s economy [[2]]. The government has taken steps to support SMEs, including extending the deadline for SMEs to obtain halal certification [[3]].
The digitalization of MSMEs has provided significant benefits, including increased sales, operational effectiveness, market expansion, and cost efficiency [[1]]. The government aims to achieve a target of 30 million MSMEs entering the digital ecosystem [[1]].
Private sectors, such as Grab Indonesia, have also played a crucial role in supporting MSMEs through educational and literacy steps, providing a safe, fast, and accessible digital platform for MSMEs to market their products [[1]]. Since 2020, Grab has created 2.3 million job opportunities and distributed Rp1 trillion to 25,000 MSME actors through the Grab Modal application [[1]].
To strengthen consumer literacy in the digital economy market, the government and private sectors must continue to collaborate and prioritize domestic products. This can be achieved through strategy training, marketing, and other efforts to support the development of MSMEs [[1]].
empowering Indonesian SMEs in the digital economy requires a comprehensive approach that involves education, literacy, and collaboration between the government and private sectors. By prioritizing domestic products and supporting MSMEs, Indonesia can increase its competitiveness in the global market and achieve its target of 30 million MSMEs entering the digital ecosystem.
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