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Digital Inclusion for MSMEs: PANDIs Real Steps to Encourage Village Economic Transformation

11 months ago | Network Infrastructure

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Jakarta, INTI – Digital transformation in Indonesia continues to expand, not only reaching the large industrial sector, but also touching small businesses and cooperatives in remote villages. In an exclusive interview with INTI Media on the INTI Talk segment, John Sihar Simanjuntak, Chairman of the Indonesian Internet Domain Name Manager (PANDI), explained concrete strategies in encouraging the digitalization of cooperatives and MSMEs to encourage national and global competitiveness.

Encouraging the Digitalization of MSMEs and Village Cooperatives

In line with the Ministry of Cooperatives' program, PANDI also supports the digitization initiative of 8,000 village cooperatives through the Merah Putih Cooperative program. “We have signed an MoU with the Ministry of Cooperatives to digitize all cooperatives,” said John. The program is supported by a budget allocation of up to Rp400 trillion to digitally activate cooperatives and their members.

One of PANDI's concrete efforts is to conduct training on the use of .id domains for MSMEs and cooperatives. Although Indonesia's population has exceeded 270 million, the utilization of domains and websites is still at a low level, which is only 0.43%. “This shows that there is a digital literacy gap,” he said.

Through training, including collaboration with Kadin (Indonesian Chamber of Commerce and Industry) in various regions such as Yogyakarta, PANDI encourages small businesses such as cake shops or home-based shops to have their own websites. “The enthusiasm of the women is extraordinary. They want to enter the digital world,” John added.

Building a Collaborative Ecosystem: From MSMEs to Digital Identity

Not only focusing on MSMEs and cooperatives, PANDI also pioneered the development of national digital identity. Through the Indonesia Digital Forum (IDF), which collaborates with various parties such as APJII and APTIKNAS, PANDI initiated a blockchain-based digital identity protocol called ID Chain. This system is expected to become a standard in business transactions, single sign-on, and personal data protection through EID applications.

John also highlighted the importance of synergy between private actors and the government, including the National Economic Council which develops digital identity and AI, and BSSN with the ID Broker program. “All parties are talking about the same thing: the importance of digital identity. But we have to unify this through communication and collaboration,” he explained.

Towards National Standardization of Digital Identity

Through the IDF, PANDI hopes that there will be an agreement on national digital identity technology standards, so that people will not be confused in using digital applications. “The government needs to be present to determine standards. If all these initiatives are synergized, we can realize solutions that are more implementable and have a real impact,” said John.

Conclusion

PANDI's efforts to encourage digital transformation are not only targeting businesses in big cities, but also reaching out to villages. Through digital literacy, cross-sector collaboration, and the development of a national digital identity system, Indonesia is moving towards an inclusive and globally competitive digital ecosystem. With a sustainable commitment, Indonesian MSMEs and cooperatives can become the main pillars in the nation's digital economy.

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