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The utilization of digital technology to enhance product competitiveness and expand marketing channels is crucial for micro, small, and medium enterprises (MSMEs). Therefore, this needs to be continuously promoted by the government.

The Ministry of Cooperatives and Small Medium Enterprises (KemenKopUKM) consistently encourages MSMEs to leverage digital technology to improve product competitiveness and broaden their market reach.

Secretary of the Ministry of Cooperatives and Small Medium Enterprises (SesmenKopUKM) Arif Rahman Hakim, while closing the series of Public Discussion and Aspiration Absorption on Cooperatives and MSMEs regarding Digital Technology Optimization for MSMEs in Banyuwangi on Friday (16/2), emphasized that technology serves as a crucial instrument in enhancing the business capacity of MSMEs. From production processes to packaging and marketing, the touch of technology is needed to compete effectively.

With technology, according to Arif Rahman Hakim, MSME entrepreneurs will find it easier to gather information about potential markets they intend to target. Furthermore, the government's policy of allocating 40 percent of procurement spending, amounting to Rp810.91 trillion, specifically for local products/MSMEs, can be optimized by accessing the LKPP e-catalog portal.

"If we cannot utilize (technology) and are unwilling to seek information and data, we will lag behind. In fact, it turns out that not many MSMEs are utilizing the e-catalog," said Arif Rahman Hakim, as quoted in the press release from the Ministry of Cooperatives and Small Medium Enterprises.

The government sees the current digital economic potential in Indonesia reaching Rp1.207 trillion and is predicted to reach Rp5.400 trillion by 2030. This digital economy is expected to become a new economic source, thus MSMEs from upstream to downstream should develop their product base with digital technology.

Arif Rahman Hakim also urged MSME entrepreneurs to set performance targets so that they are motivated to improve. If there are obstacles regarding financing to achieve these performance targets, the government has prepared affordable financing options for MSMEs through People's Business Credit (KUR) or other financing schemes, including revolving funds from LPDB KUMKM.

"With adequate access to financing, MSMEs can be assisted in expanding their business scale. Even in the micro sector, there are currently relatively cheap financing schemes available through ultra-micro financing services," said Arif.

Arif emphasized that KemenKopUKM is also committed to providing assistance to business players to facilitate ease of access to business legality. They provide facilitation services for MSMEs to obtain Business Identification Numbers (NIB), halal certification, and PIRT permits through cross-sectoral collaboration.

"Hopefully, the facilitation provided by the government can help MSME entrepreneurs, especially in the microbusiness sector, to have better competitiveness," he added.

IN