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GoTo Financial, Part of the GoTo Group, Restores the Economy through Digitizing the MSME Sector

Digital payments are the gateway to the digital transformation of MSMEs in facing business challenges during the pandemic

Since the pandemic started, overall economic recovery has become a national agenda, especially through empowering the MSME sector. According to a survey released by Bank Indonesia (BI), as many as 87.5% of Indonesian MSMEs were affected by the pandemic, with one of the aspects most affected, namely in terms of income and profit. Technology is believed to have an essential role in helping the recovery of the MSME sector. The implementation of a comprehensive digital transformation, for MSME business players, is not only the focus of the government, but also the private sector such as: GoTo Financial.

GoTo Financial is a technology group that is part of GoTo, which has services to support public financial activities through GoPay and GoPaylater, as well as providing business solutions for business actors ranging from MSMEs to large companies. These business solutions include midtrans (payment gateway leading), Moka and GoBiz Plus (network point of sale largest in Indonesia), to the GoBiz platform and Selly which can increase the efficiency of online business.

GoTo Financial encourages the adoption of technology through payments and digital solutions for its business partners. In addition to helping MSME players to be able to accept payments in the online realm, through one of its business products, namely Midtrans, GoTo Financial also encourages optimal growth for various business lines, ranging from beauty, crafts, fashion, workshop services, to retail traders.

The story of Batik Nayara surviving the pandemic through digital transformation

Before the pandemic arrived, Batik Nayara was one of the MSME business players engaged in the retail business. When the pandemic hit, the business led by Andrina felt a negative impact on turnover and profit. However, despite the difficulties, Andrina and the whole team tried to find opportunities through the adoption of technology by innovating products. In addition, Andrina also activates and intensifies online sales channels through website, which is strengthened by the system payment gateway from Midtrans which is part of GoTo Financial.

“The challenge we face today is trying to stay competitive and innovative in our work according to market needs, one of which is adaptation to the digital era. In addition to innovating with our product line by making homewear to PPE, we are also working with Midtrans as payment gateway to simplify the consumer payment process on the website,” said Andrina.

Midtrans provides online payment processing services so that businesses can accept more than 20 types of non-cash payments. Another feature that is no less interesting than Midtrans is: 'Payment Link' also provided to help online sellers and offline stores also open non-cash payment facilities that can be done via instant messaging applications or email.

Andrina added, since joining Midtrans during the pandemic, Batik Nayara's turnover has actually increased by 10 times, with the company's focus being maintained when digital payment solutions are recognized as being able to reduce operational efficiency.

"With the ease of payment on Nayara's online website that already uses technology from Midtrans, payment confirmation can be done automatically so that the Nayara team can focus more on preparing long-term business strategies to encourage sales during the pandemic," he added.

LD-FEB UI Research: GoTo Financial supports economic recovery and financial inclusion

In the research of the Demographic Institute of the Faculty of Economics and Business, University of Indonesia (LD-FEB UI) entitled "GoTo Financial's Role in Indonesia's Financial Inclusion in 2021", the GoTo Financial platform is considered capable of providing support for accelerating economic recovery through financial services and comprehensive business solutions. In addition, the LD-FEB UI Research also presented some interesting findings related to the role of GoTo Financial in becoming a gateway to accelerate financial inclusion, especially in supporting economic recovery.

The LD-FEB UI research also presented findings related to the role of GoTo Financial in becoming a gateway to accelerated financial inclusion. In addition, the research also describes the impact of the GoTo Financial ecosystem as a whole in helping MSMEs not only survive, but also achieve growth during the pandemic. This includes increased turnover as well as increased operational efficiency.

The turnover of GoTo Financial MSME partners at the end of this year is expected to increase by 37%. This increase in revenue makes it make an economic contribution to the digital ecosystem Gojek and GoTo Financial is estimated to be 1,6% of Indonesia's GDP, or around IDR 249 trillion in 2021.

GoTo Financial ecosystem which consists of various products and services, such as; GoPay, GoPayLater, Gobiz Plus, GoStore, Midtrans, Moka, Selly, and also Established. In this research, the majority of MSME players (60%) use GoPay as the first digital payment service method used in their business. In addition, almost half (49%) of MSME merchants admit that the GoTo Financial platform is the first digital platform they have adapted to run their business online.

The pandemic has also resulted in a shift in interactions and patterns of people's shopping behavior. This condition further emphasizes the importance of digital transformation - especially for novice businessmen. He said, 3 out of 10 GoTo Financial merchants were novice businessmen who just started a business when the pandemic arrived. The research also proves that 4 out of 5 GoTo Financial MSME partners are actually encouraged to expand their business after using GoTo Financial services, even though the economic situation and climate are still vulnerable to uncertainty.

Digitalization is still agreed to be the main key in helping the growth of the MSME sector. In this case, innovations from technological entities such as GoTo Financial also play an important role in realizing a stronger nation's economy, one of which is through digitizing the MSME sector. It doesn't just stop here, it's interesting to look forward to other innovations from various players in the technology industry whose hopes are also to accelerate recovery and strengthen the national economy.

This article is endorsed by Midtrans.

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