Owner of one of the leading MSMEs that Telkom fosters, Kopi Luwak Meluwes. 

Owner of Kopi Luwak Meluwes conducts digital transactions with a customer.

Jakarta, 11 November 2022 - PT Telkom Indonesia (Persero) Tbk (Telkom) as a leading digital telco company fully supports micro, small and medium enterprises (MSMEs) to enable them to continuously moving with agility with the flow of digital economic development by providing sound infrastructure, platforms and digital services.

MSMEs play an important role as the main pillar of the country's economy, which contribute more than 60% to national GDP and also absorb a large number of workers. They require an overall strengthening of their businesses to create an economic ecosystem that is stable and continues to grow well, especially when the digital economy trend will develop faster, which makes business competition will also increasingly fierce. 

Telkom's focus on supporting the progress of MSMEs is in line with the direction of Indonesia's State-Owned Enterprises (SOEs) Minister Erick Thohir. "Digital economic growth is inseparable from infrastructure. Currently, Telkom is focused on pushing digital potential in various segments, both B2B and B2C. With Telkom's presence, especially through fiber optics, data centers, and 5G towers, which are maximized through the entire TelkomGroup, it will form one large, sustainable ecosystem. Let's explore the digital economy world that Indonesia has,” Minister Erick Thohir said recently. 

Telkom has  to date rolled out various programs to stimulate the national economy from small and medium businesses, especially during the Covid-19 pandemic recovery period. Telkom has disbursed 223.28 billion rupiah in 2021 to 5,370 MSEs that it fosters through a loan program. In addition, Telkom also has many ongoing activities such as developing entrepreneurial competencies and digitizing the loan funds management, and production and distribution processes to improve micro, small and medium enterprises' ability to go digital.

In the digital economy era, Telkom is aware that digital capabilities of the community, especially small and medium enterprises, are crucial. Therefore, Telkom provides innovative solutions to strengthen digital capabilities including access to capital, access to competence, and access to commerce. For access to capital, Telkom maximally distributes funding programs to MSMEs operating in all industrial sectors. The top three sectors with the largest number of fund disbursements based on 2021 data are trade, industry and services sectors.

For access to competence, Telkom carries out training, certification and other development activities related to digitization through SOEs Houses from Sabang to Merauke. The training is aimed to encourage MSMEs to go digital, expand their product marketing nationally to the global market by utilizing Telkom's digital services, PaDi UMKM. Furthermore, for access to commerce, Telkom provides in-depth training and materials related to online market expansion and consistently encourages superior fostered partners to participate in national and international exhibitions.

Telkom President Director Ririek Adriansyah said Telkom will continue to optimize service infrastructure and digital products to explore the digital economy potential in the future. "Apart from digital infrastructure, Telkom's business pillars are digital platforms and digital services. That's why we also have an incubation program for startups and a program for MSMEs. We are also active in developing various platforms and applications in Indonesia and in several other countries and in collaboration with companies from various sectors," Ririek said.

The role of MSMEs in achieving an inclusive digital economy is also one of the main issues raised by the B20 Digitalization Task Force. Focusing on the business side, the Digitalization Task Force succeeded in launching the results of a study with the Boston Consulting Group (BCG) on the impact of digitalization on MSMEs recovery and empowerment. Featuring two speakers, B20 Digitalization Deputy Chair and Telkom Digital Business Director Fajrin Rasyid and BCG Managing Director and Partner Davids Tjhin, this study findings were discussed at the MSMEs Reports 2022 side event recently. 

The results of this study emphasized that digital transformation or go digital is an important aspect for MSMEs success, especially to recover from a pandemic and major economic challenges in the future. Digital technologies also provide useful pathways for increasing operational efficiency, optimizing processes and ways of working, and reducing ongoing business costs.

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