Indonesia’s SMEs have entered a new phase of digital transformation, where internet access is no longer the main challenge (07/04).

Nearly all SMEs in the country are now online, reaching around 98 percent connectivity in populated areas, prompting the government to focus on improving productivity and competitiveness rather than simply connecting businesses.

“If we say SMEs must go online, that’s already done. Now we talk about how they can be productive and competitive,” said Deputy Minister of Communication and Digital Nezar Patria during the Tutur Economic Dialogue 2026 in Central Jakarta on Tuesday.

Government Targets Fair Digital Marketplace for SMEs

The government’s current priority is creating a fair digital market that allows SMEs to grow, compete, and avoid being overwhelmed by imported products on digital platforms.

Nezar Patria emphasized the importance of an equal position for domestic SMEs to ensure competitiveness.

“In the digital landscape, there is a strong influx of foreign competitors. That’s why our SMEs need an equal position to compete,” he said.

Meaningful Connectivity Becomes the New Benchmark

Policy now emphasizes meaningful connectivity, which focuses on outcomes that generate real growth. The goal is not the number of SMEs online but their ability to increase capacity, expand markets, and move up economically.

“The key is not how many SMEs go digital, but whether they become productive and competitive,” Nezar explained.

Addressing Challenges from Imported Products

While digitalization offers opportunities, it also brings new challenges. Many SMEs face pressure from low-cost imported goods entering the market via online platforms, creating complex conditions for domestic businesses.

Exploring Open Network Models to Boost SME Growth

To strengthen SME competitiveness, the government is exploring open network models similar to India’s Open Network for Digital Commerce, which connects multiple channels on one platform and has shown to increase SME sales.

“Why not have one platform that can connect to many channels? This is what India has done, and it has proven to boost SME sales. We are exploring such a model,” Nezar said.

PHOTO: MINISTRY OF COMMUNICATION AND DIGITAL AFFAIRS

This article was created with AI assistance.

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