DSInnovate Report: Development and Digital Transformation in Indonesian MSMEs 2022

DSInnovate has just released the "MSME Empowerment Report 2022" which aims to provide a comprehensive picture of the development of MSMEs in Indonesia, including their efforts in digital transformation. This report is very relevant for MSME entrepreneurs who want to improve their business through the use of digital technology and related stakeholders who have a mission to advance Indonesian MSMEs.

In compiling this report, researchers conducted a survey of 1500 MSMEs in various cities in Indonesia to explore the challenges and opportunities for digital transformation in accelerating their business. In addition, a qualitative study was also carried out by conducting in-depth interviews with stakeholders in this industry, including the government and technology service providers for MSMEs.

This report consists of 4 main sections. The first part contains an overview of the landscape of MSMEs in Indonesia, including how much they contribute to the national economy and the dominant sectors in which MSMEs operate. The second part discusses the opportunities and challenges of digital transformation in Indonesian MSMEs.

The third part is the level of digital adoption among Indonesian MSMEs, including what digital technologies have been used by MSMEs and what obstacles they have faced in introducing new technologies. The fourth section discusses the perspective of technology service developers regarding digital transformation for MSMEs, including recommendations and suggestions for MSME entrepreneurs who wish to start or expand the use of digital technology in their business.

There are a number of interesting findings in the report, one of which is related to the main challenges faced by MSMEs in Indonesia in operating their businesses. As many as 70,2% of survey respondents admitted that they had difficulty marketing products; while 51,2% found it difficult to get capital support; and 46,3% had difficulty finding efficient raw material suppliers.

This difficulty was also captured by technology innovators by presenting a variety of unique services to help entrepreneurs overcome these problems. On the product marketing side, platform developers digital enablers trying to make things easier on the digital marketing side; while on the service capital side for MSMEs, there are also more and more diverse business models; and for the fulfillment of raw materials, the B2B model trade also started to develop recently.

It is hoped that the combination of perspectives from MSME actors and technology developers in this report will provide an overview that presents "connectivity" as an effort to narrow gap which exists.

In addition there are a number of other findings, including the level awareness the use of technology by MSME actors, popular technology services used, to popular digital platform utilization strategies such as social media to boost MSME business.

For further details, download the report via the following link: MSME Empowerment Report 2022.

-

Disclosure: TikTok supports the development and publication of this report