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Indonesian MSMEs Need Urgent Digitalisation to Revive and Survive

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Zilingo Editorial Team
In collaboration with Ministry of Cooperatives and SMEs, Zilingo shares vital business and economic recovery inputs in the new normal
Jakarta, August 2020 - On the occasion of Indonesia’s 75th Independence Day, Zilingo is proud to be supported by the Indonesian Ministry of Cooperatives and SMEs for its in-house ‘Ngopi Bareng Zilingo Trade’ webinar session. The fourth chapter of the special collaboration held on August 14 with notable industry leaders shared key insights on the burning topic of the moment, "Local For National: Boost National Economy Amid The New Normal Era through Digital Commerce."
"What we are witnessing now is a transition period which will be encumbered with new challenges for everyone, including those who are a part of the MSME industry. Amidst this crucial time, we wholeheartedly appreciate our business partners and sellers’ relentless efforts to survive, while keeping the economy running by providing jobs and offering a range of good quality products for their customers. Through this special edition of Ngopi Bareng Zilingo Trade, we hope to foster a sense of pride in local products and through our platform, we will continue to support Indonesian MSME players in facing this critical situation together," said, Ade Yuanda Saragih, VP and Country Head, Zilingo.
The eminent panel of speakers on the webinar session featuring Destry Annasari, Assistant Deputy for Marketing, Kemenkop UKM; Anindya Sukarni, Founder & CEO, M I U M O S A; Dani Purnama, Founder & CEO, Surfinclo with Faisal Fariduddin Nasution, VP Government Relations, Zilingo offered relevant inputs for the country's economic recovery process voicing strongly on the adoption of technology across sectors, especially in digital commerce. Here are the three main takeaways that drove the talk for small and medium brands and businesses striving in the current scenario.
Execute digital inclusion as early as possible
Stats from Kemenkop UKM presented by Destry Annasari, Assistant Deputy of Marketing, Ministry of Cooperatives and MSEs reveals that more than 50% of Indonesian MSME players admitted to their business being affected by the pandemic. Those businesses with a wider market presence who adapt digitization of their routine processes have a fair chance of surviving the large scale PSBB (Large Scale Social Restrictions). "About 99% of businesses in Indonesia are MSMEs, which generate 97% of jobs in Indonesia. Unfortunately, of the existing 64.2 million MSMEs, only around 13% of UMKM players are digitised. This includes the use of social media to support marketing activities, being registered on the marketplace platforms and utilizing technology to support operational activities. Hence, we would like to encourage the large chunk of 87% of the existing MSMEs to urgently accommodate a digital approach and rebuild themselves," said Destry.
Dani Purnama, Founder & CEO, Surfinclo also admitted that before digitizing his business, he was struggling with tedious administrative processes. “When lots of orders came in, we were extremely overwhelmed. We finally realized that digitization is very important to assist the administrative process and to support the company's infrastructure, especially when we are aiming to span wider," he explained. Currently, Surfinclo has been doing digital commerce for around a year.
Anindya Sukarni, Founder & CEO, M I U M O S A added, "This is industrial revolution 4.0 and in this era, technology adoption is the only means onward. For M I U M O S A, we started building its digital infrastructure early on, so in a time like this we expect no drastic changes in our capacity, capabilities and scope of work. However, it should be well noted that before going digital, our business itself must also take a modern approach, which extends right from fixing the packaging to the way we communicate with our customers."
Optimize collaboration and coordination between agencies and UMKM
To overcome the existing challenges, the Ministry of Cooperatives and SMEs has provided a holistic plan to support MSMEs during the pandemic. The broad steps of the plan stress on: improving coordination and collaboration, building culture by creating local heroes, increasing human resource capacity and expanding segmentation. Destry shares “In difficult times like this collaboration and coordination is much needed to improve overall MSMEs business performance for which the Ministry of Cooperatives and SMEs has provided programs such as Factory Sharing, LKPP Page for MSMEs products and MSMEs Digital Market. And to instil a sense of belonging, we created ‘Local Heroes’. MSMEs will also be trained gradually to upgrade their skills and competences. Lastly, we will empower MSMEs to expand and grow by reaching a wider audience base.” These steps are also supported by other programs such as the UMKM Digital Market, Indonesia Creative Store, KUKM HUB and EDUKUKM.
Maximize creativity for innovation
COVID-19 has reshuffled consumer habits and behaviour leading to some major challenges for MSMEs operating across industries. At this point brands and businesses not only have to closely monitor the market but also keep innovation as its working principle to retain and attract more customers. Surfinclo realizes the importance of creativity to evolve as a business and in keeping up with the times they have started new product offerings to meet relevant consumer needs, like PPE and mask items, essentials during this current health crisis.
Supporting this idea, Faisal Fariduddin Nasution, VP of Government Relations, Zilingo added, "While product innovation is imperative now, it should be in tandem with the evolving consumer behaviour patterns of the time. Zilingo Trade, in addition to enabling seamless commerce between parties, also provides a host of value-added business services to tailor a brand’s image and messaging catering to consumers’ evolving taste and demands. With services like photo and video cataloging, digital media marketing to social media creation and management, we believe businesses will have the right access to creative and effective marketing strategies to draw customers and scale in the new normal. Through our one-stop business solutions platform, Zilingo Trade, we hope to support large scale digitization of MSMEs in Indonesia.”
To know more about industry challenges, best practices and updates from some big brands coping with the ‘new normal’, join us in the next edition of ‘Ngopi Bareng Zilingo Trade’ on Friday, August 28, 2020 with the theme of 'Building a Strong Brand Image Through Effective Content Marketing on Social Media' with Ferdian Aryo, CEO of PT Pakaian Anak Bangsa and Putri Nindya, Assistant Social Manager, Zilingo. Visit zilingotrade.id for more information.
Zilingo Editorial Team
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