Chamber Of Commerce Encourages MSMEs To Shift To Digital Economy

Yogyakarta (Antara Bali) - The Indonesian Chamber of Commerce and Industry encourages the Micro, Small and Medium Enterprises (MSMEs) to immediately shift to digital economic system in order to expand market access and increase their profits.

"So far, the number of MSMEs which have been using the system to market their products is only 30 percent," a member of the Bilateral Economic Committee for Indonesia and the Chamber of Commerce and Industry, Reza Ahmad Maulana, said here on Wednesday.

According to him, the use of the digital economy for transactions and marketing is in line with President Joko Widodo's expectations  to make eight million enterprises go online by 2020.

He disclosed that a study carried out by the McKinsey Global Institute showed that MSMEs using digital economy system can undertake double the number of transactions compared to those which use only conventional modes.

Thus, given the fact that the MSMEs contribute 51 percent to the national economy, using digital system can make a huge difference, almost doubling it.

Reza informed that in order to make more MSMEs use the digital system, the Chamber is providing training for the purpose.

"At least they will understand how to open an online store and make transactions and create a market," he added.

The Chamber fully supports the plan of the Indonesia Stock Exchange (BEI) and the Financial Services Authority that will cooperate with the MSMEs to present them in the stock market through IPOs (initial public offerings).

The Head of the Indonesia Stock Exchange in Yogyakarta, Irfan Riza Noor, observed that during 2016, his office will focus on improving stock market literacy for small and medium businesses in the province.

"This year we are working with the Chamber of Commerce of Yogyakarta to set up a special team to encourage  the small and medium enterprises in the province," Irfan revealed.

According to Irfan, a lot of benefits can be obtained if the MSMEs  join the stock market. With the IPO, they will easily get alternative funding from the stock markets. (WDY)