Ministry of Communications and Informatics (MCI) launched the "SMEs Go Online Program" in 2016. Nowadays, this program focuses to implement industry 4.0 for Indonesian SMEs to scale up. It has the goal to transform SMEs from offline to online commerce. SMEs have a significant role to invent economic growth, job creation, and poverty reduction. In 2018, SMEs had contributed almost 60,3% of the total national gross domestic product, absorbed 97% of the total Indonesian workforce, and created 99% of the total employment. Approximately 99% of the total business units in Indonesia have included micro, small, and medium based on data from the Ministry of Cooperative and SMEs in 2008.
Considering SMEs ' role as critical in the economy, the support of SMEs must be enhanced to achieve the scaling up of SMEs. The Indonesian Government has established the target of the Scale-Up of SMEs Program of 33.000 in 2024. To obtain this target, in 2021, MCI developed the policy "Survey of the Requirements of Technology Adoption on Indonesian SMEs" that surveyed more than 37.370 SMEs Producers in 12 priority tourism regions. Implementation of digital technologies paves new opportunities for SMEs, reduces operational costs, opens new markets, eases communication with customers, and creates a new business sector.
Many problems of business can be solved by using digital technologies that include marketing, financial, human resources, etc. Emerging digital technologies can assist business operational processes that improve performance effectiveness and business performances (Rahayu & Day, 2017; Harash, 2017). According to OECD (2017), digitalization is an important aspect of scaling up SMEs which can increase sustainable competitive advantages. Digitalization processes in business units can support the success of the business for a long period. Easiness of internet access and technology support devices makes SMEs that can interact with their customer and get information about their customer's preferences easily and quickly. With digitalization processes, SMEs can produce innovatively products and services by considering the information of consumer preferences that have been obtained. Ultimately, it can enhance the overall achievement of a business. Sabbagh, et.al (2013) showed that the increase of the digitalization index by about 10% can elevate the Gross Domestic Product (GDP) in-country by 0,75% and decrease unemployment rates by 1,02%.
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