By 2024, the Indonesian government aims for 30 million of the country’s Micro, Small, and Medium Enterprises (MSME) to go digital. This is a necessary step to take, as digital platforms that offer solutions for finance and operational efficiency play a crucial role in fostering business growth and resilience among MSMEs. However, while there would be vast opportunities once these businesses digitize, the road to digital transformation is not a straightforward path. So how are local platforms playing their part in ensuring that the government’s goal is reached?

The landscape of Indonesian MSMEs

Contribution

Indonesia’s MSME sector contributes greatly to the country’s economy. Over time, these enterprises have opened up employment opportunities for 97% of the workforce, and they are responsible for 61.9% of the nation’s Gross Domestic Product (GDP).

If properly empowered, enabled, and maintained, MSMEs can be the deciding factor on whether or not Indonesia’s digital economy reaches the projection of exceeding USD 124 billion by 2025.

Challenges

Despite these potentials, there are a number of challenges hindering MSMEs from fully realizing their potential.

The digital divide is still prevalent, with more remote areas lacking access to hardware, software, and most importantly proper connection. This issue has exacerbated digital adoption and digital literacy.

Additionally, there is still a reluctance among Indonesian MSMEs to adopt digital technology. According to a report by Boston Consulting Group, Indonesian MSME owners lack confidence to switch to digital sales. The concern lies in the effects of technology towards consistency and quality of product development in the digital marketplace.

Among other issues, Indonesian MSMEs also face operational challenges and require more comprehensive government support to ensure a smooth transition into digitalization.

99% Usahaku: Telkomsel’s response to the 2024 goal

Understanding the importance and potential of MSMEs, Telkomsel offers 99% Usahaku: a platform exclusively for Indonesian MSMEs, which helps enterprises find suppliers and resellers, access digital business solutions, upgrade their skills and knowledge, and even receive funding.

99% Usahaku provides all-in-one support for MSMEs through four features: Pemasokku, Pemodalku, Solusiku, and Inspirasiku.

Pemasokku: optimizing efficiency

Considering the operational challenges often faced by MSMEs, 99% Usahaku centralizes one aspect of the supply chain in one app.

The feature Pemasokku enables owners to purchase stock in-app in what is known as a B2SME marketplace. This platform also makes room for supply brands to offer their products to a wide range of customers.

Pemodalku: enabling funding

99% Usahaku also offers financing for resellers. They can apply to receive funding for their business needs through the app and increase their buying power.

Solusiku: supporting with digital solutions

Members of 99% Usahaku have access to a wide range of digital solutions from Telkomsel Enterprise, specifically catered to MSMEs. These include a digital POS system, SMS and display banner advertising, and a connectivity bundle tailored to MSME needs.

Inspirasiku: empowering owners

Beyond providing solutions, 99% Usahaku is also a platform that allows MSMEs to keep expanding their knowledge. Business-related education is provided on the platform in the form of articles, online training sessions, and discussion forums.

The future of business with digital solutions

Since its inception, 99% Usahaku has seen 88,000 MSMEs register on their app. Out of these enterprises, 997 of them have received funding to further their businesses. As a result, revenue for most 99% Usahaku users have increased by an average of 42%.

99% Usahaku is just the beginning of many platforms that support MSMEs in their expansion. In addition to aiding with the more minute details of operations, digital solutions are also contributing to solving the larger issue of financing, as seen in the above numbers. In fact, the ASEAN Business Advisory Council believes digital lending platforms will expand financial access for MSMEs, and in the long run result in business growth and resilience.

To unlock greater opportunities for your MSME, download 99% Usahaku on the App Store or Google Play Store today. For more information on digital business solutions for corporations and MSMEs alike, follow @tconnext.