Indonesia accelerating digitization of MSMEs to encourage development of Islamic economy
Indonesia’s Ministry of Cooperatives and Small and Medium Enterprises is encouraging the potential for developing the Islamic economy in the country.
It is doing so by accelerating the digitization of MSMEs (micro, small, and medium enterprises).
“Technologically, we continue to conduct trainings for grassroots (community) on microeconomics, collaborating not only with technology operators but also with direct digital platforms by providing technical guidance,” deputy for micro business at the ministry, Eddy Satriya, said at an online sharia economic development event on Thursday.
The government is targeting to help as many as 30 million MSMEs enter digital platforms or marketplaces by 2024, he noted.
Satriya said he is optimistic that the target would be achieved within a year and a half, considering that up till now, the achievement of digitizing MSMEs has been quite high due to the encouragement provided by a number of ministries or institutions through similar programs.
“This is really working together. God willing, if it is just to reach the target of 30 million, it will not be too difficult, but what will happen next, and how to maximize the digitized MSMEs. That is what we will continue to develop,” he added.
The push to maximize the Islamic economy in Indonesia is still relatively new and marked by the formation of the special non-structural institution, the National Committee for Islamic Economy and Finance (KNEKS), in 2020, he added.
The halal industry is projected to increase by 6.2 percent in 2024. Given that Indonesia has the largest Muslim population in the world, the development of the halal product industry is one of the priorities pushed by the Ministry of Cooperatives and SMEs together with KNEKS, he informed.
