One of the ways that Indonesia can move up and become a developed country in addition to always being adaptable to digitalisation developments is by marketing Indonesian products in the global market. To that end, the government through the Ministry of Trade continues to advance the digitalisation of micro, small, and medium enterprises (MSMEs), especially in West Papua, to improve the competitiveness of its MSMEs. This was stated by Vice Minister for Trade Jerry Sambuaga on Tuesday, 13 June 2023.
“Digitalisation is a form of adaptation. Related to the Proud of Indonesia-made Products campaign, the Ministry of Trade continues to advance digitalisation by building an ecosystem of partnership with micro, small, and medium enterprises (MSMEs), marketplaces, and funding agencies to support the marketing of Indonesian products, especially West Papuan MSMEs,” the Vice Minister explained during the web seminar “Proud to be Made in Indonesia: Let’s Go Global West Papua” in Jakarta.
According to the Vice Minister, the digitalisation of businesses needs to be done vigorously. This is due to the fact that the Covid-19 pandemic has led to a change in the people’s shopping patterns, favouring online shopping which has necessitated businesses to be adaptable and able to follow market developments.
“The number of businesses that have become part of the digital ecosystem (onboarding) by the end of 2022 is more than 20 million MSMEs. Therefore, I am optimistic that the onboarding target of 30 million MSMEs by 2024 can be achieved,” said the Vice Trade Minister.
Based on data processed by the Ministry of Trade, Indonesia’s digital economy is estimated to reach USD 77 billion in 2022 or 39.7 per cent of ASEAN’s digital economy. By 2025, the value is projected to increase to US$130 billion.
The value of electronic commerce transactions (e-commerce) in 2022 has also reached IDR 476.3 trillion. In 2023, the value is projected by Bank Indonesia to increase to Rp572 trillion, an increase of around 20 per cent compared to 2022. Even by 2025, the e-commerce sector is expected to grow consistently by around 17-22 per cent.
Deputy Trade Minister Jerry said that the Ministry of Trade continues to make various efforts to maintain trade performance. These efforts are realised through various promotional activities, trade missions, and trade cooperation through Preferential Trade Agreement (PTA), Free Trade Agreement (FTA), and Comprehensive Economic Partnership Agreement (CEPA) schemes.
Vice Trade Minister Jerry revealed that Indonesia already has 35 agreements, including 9 bilateral agreements. “These trade agreements can be utilised as fast tracks or government facilities for Indonesian MSME players to improve access to international markets,” added Deputy Minister Jerry.
The webinar was held by the Ministry of Trade to promote the National Movement of Proud to be Made in Indonesia (BBI) and Proud to Travel in Indonesia (BWI) in West Papua. In other words, promoting featured products and tourism in West Papua so that the target number of products onboarded and sales transactions through market locations and tourist visits in West Papua can be achieved.
It is hoped that BBI can encourage more MSMEs who are able to create jobs and bring prosperity to the community and lead national businesses to success in the global market.
Vice Trade Minister Jerry also asked for full support and participation from all Indonesian people to become heroes in their own country, by continuing to buy and use products made in Indonesia. “On various occasions and especially today, I wear Indonesian products. Starting from shoes, watches, glasses, trousers, to batik shirts with Papuan motifs. It is hoped that Indonesians will not only be proud of Indonesian products, but also buy and wear Indonesian products,” said Deputy Trade Minister Jerry.
Also attending the webinar were Acting Governor of West Papua Paulus Waterpauw; Director General for Domestic Trade Isy Karim; Deputy for Tourism and Creative Economy of the Coordinating Ministry for Maritime Affairs and Investment Odo R.M Manuhutu; Deputy Chief Representative of Bank Indonesia West Papua Province Roni Cahyadi; Acting Regional Secretary of West Papua Dance Sangkek; and Director of Digital Business of PT Telkom Indonesia (Persero) Tbk Fajrin Rasyid.
In his presentation, Director General of PDN Isy Karim said that the BBI movement was inaugurated by President Joko Widodo on 14 May 2020. In 2023, the Ministry of Trade became the campaign manager with the Ministry of Environment and Forestry in BBI and BWI West Papua 2023.
“West Papua has tremendous potential to promote, such as agriculture, mining, forest products, and nature tourism. Its economic potential recorded a growth of 3.13 per cent in the first quarter of 2023. West Papua’s exports in March 2022 were recorded at USD 211.77 million and March 2023 at USD 279.4 million. This means that it grew 31.4 per cent year-on-year,” Karim explained.
Karim continued that the government has provided a number of assistances for West Papua MSMEs related to BBI and BWI. First, technical guidance on product development and business capacity. Second, mall-to-mall exhibitions of West Papua’s superior products. Third, onboarding West Papua MSMEs to PaDI UMKM and Digipay marketplaces. Fourth, entrepreneurship technical guidance for food processing and transport SMEs involving 40 West Papua SMEs. Fifth, Ramadan Festival in Manokwari 2023 involving 20 food, clothing, craft, and herbal MSMEs. Sixth, a bazaar involving 21 West Papuan MSMEs. Seventh, Manokwari culinary tourism involving 100 culinary MSMEs.
West Papua Now 