What is it about?
This paper discusses the development of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia through the adoption of a digital ecosystem. MSMEs play a vital role in the Indonesian economy, contributing significantly to the Gross Domestic Product (GDP) and employment. While the sector is highly flexible in adapting to economic changes, it faces challenges such as limited capital, inconsistent product quality, and restricted market access. However, digital transformation offers MSMEs the opportunity to enhance their competitiveness, improve operational efficiency, and expand their market reach. The article also identifies barriers to digital adoption, including low digital literacy and inadequate infrastructure. Additionally, it highlights opportunities for accelerating MSME digitalization through collaboration among government, business actors, and educational institutions.
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Why is it important?
This work is timely because it addresses the growing role of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, especially in the context of digital transformation. The unique contribution of this publication is its focus on how digital ecosystems can empower MSMEs to become more competitive in the global market. With over 12 million MSMEs in Indonesia already adopting digital platforms, this research highlights the challenges and opportunities for further digital integration, making it relevant in the current economic climate shaped by the COVID-19 pandemic. The study emphasizes the potential of MSMEs to drive economic recovery and growth by embracing digital technologies, which could influence policymakers, businesses, and educators working to accelerate digital transformation in Indonesia.
Perspectives
From my perspective, this publication is crucial for understanding the ongoing digital shift in Indonesia’s MSME sector. The role of MSMEs in the national economy cannot be overstated, as they contribute significantly to employment and GDP. However, there are many challenges that need to be addressed for these businesses to thrive in the digital era. By offering practical insights into the barriers to digitalization, such as low digital literacy and limited market access, this paper provides valuable guidance for both MSME owners and stakeholders aiming to improve digital adoption. The opportunity to see MSMEs evolve with digital ecosystems presents not only a positive outlook for the businesses themselves but also for the broader economic landscape of Indonesia.
yelfiarita yelfiarita
Politeknik Pertanian Negeri Payakumbuh
Read the Original
This page is a summary of: MSME development through a digitalize ecosystem: Challenges and opportunities, January 2025, American Institute of Physics,
DOI: 10.1063/5.0269294.
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