Interview: Indonesian SMEs encouraged to tap into myriad benefits of digital technology

With a myriad of business opportunities awaiting in an increasingly digitalized world, players in the Indonesian Small- Middle Enterprises (SMEs) sector are being encouraged to seize the opportunities from such beneficial conditions in order to further boost their businesses.

Despite its dominating portion in the structure of the nation's economy, the number of SME players in Indonesia extensively using digital instruments to expand their markets is still deemed insignificant, business observers have noted.

According to data released by Indonesia's Industry and Commerce Chamber (Kadin), only 30 percent of SME businesses in the country are already using digital instruments and tools to expand their markets.

This figure is put into perspective when compared to the fact the sector comprises more than 60 percent of the country's overall Gross Domestic Product (GDP).

Indonesian President Joko Widodo has initially set a target of 8 million SMEs business in the country "going online" by 2020.

Business consultant agency McKinsey Global Institute has said that intense involvement of digital instruments in SMEs business may boost the nation's economic growth by 2 percent each year.

The agency also said that the use of e-commerce through digital instruments would further spur SME businesses by as much as 80 percent.

As such, becoming cognizant about the huge potential from becoming proficient with and using digital instrument technology in the Indonesian SME sector, comes highly recommended to business people to expand their respective markets and sales.

"The supporting technology exists at present. The access and acquisition of this technology is also relatively affordable, especially for SMEs," Regional Head of Commercial Payments MasterCard Asia Pacific, Singapore, Philip Glickman told Xinhua.

"The key is getting the right people in the right position with the knowhow to use that specific technology," Glickman said in an exclusive interview recently, during the 12th World Islamic Economic Forum held here.

He added that Indonesia already has a strong foundation, resources and the right economic environment for SMEs to grow further.

"With an abundance of resources and the potential of young people, Indonesia is perfectly positioned to take advantage and grow. Technology plays an essential role in SMEs and these businesses will eventually drive the economy," he said.

Philip encouraged Indonesian SMEs to partner with other companies to fill in the gaps in their business deliveries, saying that once SMEs know how to choose a partner correctly and how to use data effectively, they can chart a vertical course to success.

Another expert, Eddy Lee, Managing Partner of the Singapore-based Coffee Ventures, told Xinhua exclusively that a new phenomenon is the expanding use of smartphones in Indonesia, which are sometimes used to run SME businesses.

"Through smartphones, which have become less expensive and more secure, Indonesian SME business people can now reach and do business with thousands of potential new customers and markets across the country through social networking platforms like WhatsApp and Facebook applications," Lee told Xinhua.

He added that Indonesia has many talented young people who have skills in programming and web design who can be partnered with SMEs so as to provide more interesting, attractive and complete information landscapes that can appear in their digital website's instruments.

In addition, establishing such partnerships with talented, creative professionals is highly recommended to assure that the SMEs can run effectively to attract and grab potential customers and gain more and deeper access to the markets they are targeting.

"They can help you with modern digital tools and finding the right people who can deliver like this can lead your business to enter digital trade in a cost-effect manner," Lee said.

The Indonesian government through its economic reform packages has provided massive facilities to help kickstart more SME businesses that include swifter administration and export procedures, better financing access to banks, and provisions for partnering with foreign investors.

The SME sector is highly expected to boost the economy at the grass roots level that will eventually contribute to boosting the nation's economic growth, thus reducing the unemployment rate as the sector's continued expansion will accommodate a significant number of new workers. Endit