UMKM Productivity Is Getting Higher with the Use of Technology

UMKM with technology
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The Covid-19 pandemic has had a lethal effect, but it has also brought positive aspects to Indonesia. The positive effect created by the pandemic that has occurred in the last 2 years is the rapid acceleration of technology and digitalization in Indonesia. Moreover, the Small and Medium Enterprises (UMKM) sector has been greatly helped by this energy acceleration.

The contribution of Indonesian UMKM to the global production supply chain, it is slightly higher than neighboring countries such as Brunei, Laos, Myanmar, and Cambodia. The UMKM sector’s highest contribution to the global production supply chain reached 2.7%. In fact, ASEAN contributed 9.3% to the global production supply chain in the 2009–2013 period.

For this reason, the UMKM growth map in Indonesia must indeed be encouraged from various parties such as government programs, financing partners, logistics, brand partners, and other parties, so as to encourage its main growth, namely the introduction and trust of UMKM actors to digital platforms markets.

Head of the STEI-ITB Radio Telecommunication and Microwave Laboratory said that the use of broadband internet continues to increase. We Are Social data in February 2022 states that the number of cellular phone users in Indonesia has reached 370.1 million or 133.3 percent of the total population.

In addition, about 204 million or 73.7 percent have access to broadband internet. Internet speed via cellular also improved to 15.82Mbps.

“Wide broadband penetration will increase the new digital economy, such as the emergence of e-commerce,” said Ridwan in a statement received, Tuesday (22/2/).

According to him, e-commerce users in Indonesia in February 2022 had reached 158.6 million users or grew 14.9 percent compared to the same period last year.

Moreover, the resulting transaction value also increased by 59.4 percent or USD 20 billion to USD 53.81 billion.

Ridwan said that the increase in MSME productivity was due to the spread of technology in urban and rural communities.

Telecommunication Operators Must Continue to Develop

Furthermore, Ridwan believes that to continue to develop and improve telecommunication services for the community, telecommunication operators must have sound financial fundamentals.

Based on data from Tefficient’s 2020, Indosat and H3I are the telecommunication operators that sell the fourth and fifth cheapest services in the world after Jio, Airtel, and MTN IranCel.