Ministry to Establish 49 Digital SME Villages By 2017

Jakarta (Antara Bali) - Ministry of Cooperatives, Small and Medium Enterprises has targeted to complete establishment of 49 digital villages by the end of 2017, an official said here, Tuesday.

The ministry's Deputy for Business Restructurization Yuana Sutyowati Barnas said, the ministry has worked in cooperation with state-run telecommunication firm PT Telkom in its program to set up Digital SME Village, and more villages could be set up by the end of 2017.

"This program has been run since January, 7 digital SME villages had been established in some areas," Yuana said, adding that its cooperation with PT Telkom is aimed to improve SME's digital penetration by optimalizing Integrated Business Training Center (PLUT).

She said, such cooperation is important considering the limited national as well as local budget to develop digital infrastructure that could benefit SMEs.

"We will continue to explore non-state budget opportunities through cooperation and synergy," she said.

Yuana reiterated that digital SME village would be a solution for various problems faced by the country's small and medium enterprises, including to expand their network and marketing.

"This would increase the quality and marketing access for SME's products," she said, underlining the government's encouraging policy package on e-commerce road map.

Yuana said, the ministry would establish 49 PLUTs in 24 provinces, with 293 trainers.

For its first stage, some PLUTs would be collaborated with Digital SME Village, among others PLUT in Sukabumi, Subang, Wakatobi, Banten, and Tarakan.

Yuana added that the Digital SME Village program would play its role as a catalyst for the establishment of business ecosystem, by utilizing information communication and technology (ICT) comprehensively.

The partnership with PT Telkom would allow SMEs to expand their market access while at the same time adjusting with technology development to improve its competitiveness.

On the other hand, PT Telkom would provide high speed internet access as well as guidance programs in training and to set up Smart Business application to promote SMEs.

The company has prepared online transaction facilities through Blanja.com, Jarvis Store or Fin Pay applications.

Yuana disclosed that a random survey in a SME Digital Village in Sukabumi showed that business turnover in the village on the average has increased by 60 percent.

"In Sukabumi, ball producing center, koi fish center, and slipper producing center, after becoming digital village they saw a significant increase in business turnover," she said.

After enjoying free internet access in its first year, SME digital village could expand its marketing thus they could afford for its own internet spending. (WDY)