The adoption of digital technology among Micro, Small, and Medium Enterprises (MSMEs) in Indonesia is growing rapidly, ranging from the use of cashless payment systems (QRIS) to marketing on social media. However, this adoption of digital tools is deemed not yet fully capable of driving business owners to scale up substantively. This phenomenon shows that the utilization of technology is still limited to shifting the marketplace, without touching fundamental business strategy.
According to data from the Indonesian Chamber of Commerce and Industry (Kadin) in 2025, the number of non-agricultural MSMEs in the country has reached around 30.21 million business units, dominated by the micro sector. On the other hand, Bank Indonesia recorded that QRIS merchant users in the first half of 2025 surged to 39.3 million, with 93.16 percent of them being MSMEs. This digital potential is bolstered by the national internet penetration rate, which has reached 79.5 percent, equivalent to 221 million active users.
Although digital infrastructure is becoming more affordable, the fundamental problem lies in business governance. Many MSMEs use digital platforms without balancing them with proper financial reports, inventory management understanding, or competitive pricing strategy mapping. As a result, their presence in the digital space is often drowned out amidst the fierce competition of the online market, which is now also crowded with mass-imported products.
A report from the Institute for Development of Economics and Finance (INDEF) confirms that digital platforms do have the potential to boost sales. However, these benefits do not occur automatically without the preparedness of the business owners' internal capacity. Minimal digital skills, weak store reputation management, and the inability to manage consumer loyalty are the main obstacles that prevent technological efficiency from being optimal.
To address this gap, the pattern of MSME mentoring must be completely overhauled. Training must no longer just teach the technical aspects of creating e-commerce accounts, but must address fundamental aspects such as market needs analysis, business legality, and the utilization of transaction data for decision-making. Synergy with higher education institutions through applied research programs and student business incubation can also serve as real accelerators on the ground.
Local governments are also urged to change their key performance indicators in economic empowerment programs. The success of assistance programs must no longer be measured by administrative aspects such as the number of training participants, but by real impacts such as increased revenue, job expansion, and business sustainability. Ultimately, the key to the success of this transformation lies in the ability of human resources to turn technology into an instrument for sustainable growth strategies.
