The Indonesian Government has initiated affirmative action to accelerate using local products. Jokowi, President of the Republic of Indonesia, proclaims this action to increase the role of SMEs in economic growth. According to this action, Minister of Communication and Informatics, Johnny G. Plate invites digital platforms to encourage economic improvement for SMEs. MCI held Forum of Digital Economy IV on digital platforms or marketplaces using the hybrid method in Grand Hyatt Hotel, Central Jakarta on Monday, April 4, 2022. Through this forum, Minister hopes to get input on high-level policy from all stakeholders especially on digital platforms about increasing SMEs activities and using domestic products.
In 2022, our government is targeting 20 million SMEs to penetrate the local market. Nowadays, there are 19 million units of SMEs that enter the digital ecosystem based on data from the Association of e-Commerce Indonesia (IdEA). These achievements are not enough and must be increased. In 2023, our government is targeting to onboard in marketplaces about 24 million units and 30 million units in 2024. The government is targeting to include at least one million locally made products in the e-catalog by the end of 2022. Jokowi also takes affirmative actions from expenditures of ministries, institutions, and local governments that will buy local products about 400 trillion rupiahs from the potential 1.000 trillion rupiahs. Government spending must be prioritized by purchasing locally made products.
Minister of Communication and Informatics stated that there are still many challenges for Indonesian SMEs to harness digital platforms. "Limitation of telecommunication infrastructures and connectivity, and policies how to deal with illegal content, digital literacy, security, and personal data protection.", said Mr. Jhonny in The Fourth of Digital Economy Forum. MCI focuses to develop digital infrastructure and supporting regulations related to data governance and handling of illegal content. Until October 2021, MCI has handled about 4.220 illegal commercial websites including fintech and e-commerce. "This effort has collaborated by other ministries/institutions for example Ministry of Trade, The National Agency for Food and Drug Control, etc. MCI has The Center for Testing Telecommunication Devices that will block illegal or black-market telecommunication devices. Then, MCI has given sanctions such as written reprimand for digital platforms that leak customers' personal data.
The government will take decisive action like access blocking when digital platforms disobey the regulation. The goal of this action is to defend the interests of locally made products that get support from all societies. Indonesian government pushes the private sector that has the same partisanship to mainstream locally made products. Therefore, to achieve this goal, it must do a public-private partnership.
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