Jakarta, Gizmologi – Since the pandemic hit, there have been significant changes in various aspects of life, most of which are digital. This digital transformation has also touched various business sectors. The acceleration of adaptation for business actors to the digital realm is also considered important in the context of economic recovery in Indonesia.
According to Teguh Anantawikrama, General Chairperson of the Rising MSME National Movement and Deputy Head of the Indonesian Chamber of Commerce and Industry’s Research and Technology Agency, in addition to digital payments, modernization in the supply chain must also be optimized, especially because we face many problems in the logistics sector. Now is considered the right time to support entrepreneurs, especially MSMEs.
“Everyone has an important role in supporting the sustainability of the business. If everyone is aware of this and can maximize their role, then hand in hand we can build a good ecosystem for MSMEs. Indonesia can rise only in togetherness,” said Teguh at the webinar ‘Digital Acceleration for Indonesia’s Economic Recovery’ held by Xendit some time ago.
Meanwhile, the Director of the Payment System Policy Department of Bank Indonesia explained 5 digital acceleration trends that need attention in 2022 in Indonesia. Here’s the description.
1. Expansion of consumer reach outside big cities
The pandemic has changed people’s behavior patterns in carrying out economic activities, both on the consumer and merchant side. So far, MSMEs still play an important role in the Indonesian economy, where MSMEs account for 61% of Indonesia’s total Gross Domestic Product (GDP).
It was noted that there was an increase in the number of digital consumers to 21 million during the pandemic. Interestingly, 72% of these new consumers are outside the big cities. Therefore, it is important for today’s business actors to expand their reach to non-urban areas, especially because Indonesia has a large geographical area with diverse consumer characteristics. This expansion can be done more easily through online sales channels that are now widely available.
2. Digital transformation is the key to survival
In the midst of the many challenges caused by the pandemic, digital transformation is the key to being able to maintain and develop the business further. According to research by Google, Temasek & Bain Company in 2021, the majority of MSME players have carried out digital transformation, for example by running digital marketing (69%), digital operating systems (49%), website creation (45%), cloud storage (44%) ), digital analytics (43%), and use of collaboration software (38%).
In addition, it was noted that almost all (98%) digital merchants have accepted digital payments from buyers. This means, to be able to further advance their business, MSME actors need to equip their businesses with digital payments that are comprehensive, safe, and practical to use.
3. Improved digital payment acceleration
According to Bank Indonesia data, the digital transformation of banking, the establishment of the Digital Financial Economy (EKD) ecosystem, and rapid innovation are expected to continue to drive the acceleration of digital payments. In 2022, the use of the digital banking system (digital banking) is estimated to increase to IDR 48.6 thousand trillion from IDR 40 thousand trillion in 2021.
Meanwhile, the use of electronic money has the potential to increase to IDR 337 trillion from IDR 289 trillion last year. The e-commerce industry is also expected to record an increase of 7.5%, year-on-year, to Rp530 trillion this year.
4. QRIS is the pre-eminent payment method for MSMEs
In 2022, Bank Indonesia’s payment system policy seeks to accelerate the integration of the digital economy and finance ecosystem, especially with non-cash payment methods. One of the main ways is to increase QR adoption for all businesses.
QRIS is a contactless payment method that provides many advantages for MSMEs, because it can be used in offline stores, e-commerce, and buying and selling through social media. In addition, QRIS can also be printed on posts, lanyards, receipts, EDC machines, and so on.
“Digitally processed, business actors don’t have to bother looking for a change, avoid counterfeit money, are more hygienic and without physical contact, and funds can go directly to the account with everything neatly recorded in the system,” said Dudi Darmawan.
5. Innovation and collaboration is a must to adapt
In the all-digital era, MSME actors must prioritize innovation and collaboration to be able to adapt well in the midst of a dynamic situation that continues to change.
To adapt to dynamic and ever-changing trends, currently, many business actors and government institutions support a supporting ecosystem for MSMEs in Indonesia. The presence of these third parties aims to help MSMEs to adopt digital transformation more quickly, both in terms of payments, operational systems, to logistics.
The Indonesian version of this article can be read inGizmologi.ID