Jakarta, INTI - The digital transformation of micro, small, and medium enterprises (MSMEs) has entered a new stage, where internet access is no longer the primary challenge.
The focus has now shifted toward building a fair digital marketplace, one that enables MSMEs to grow, compete, and avoid being overshadowed by imported products on online platforms.
Deputy Minister of Communication and Digital Affairs, Nezar Patria, highlighted that nearly all MSMEs in Indonesia are now connected to the internet.
With connectivity reaching around 98 percent of populated areas, government policies are no longer centered on simply bringing MSMEs online.
“If we say MSMEs need to go online, that phase is already complete. The real challenge now is how they can become productive and competitive,” he stated during the Tutur Economic Dialogue 2026 in Central Jakarta on Tuesday, April 7, 2026.
From Connectivity to Meaningful Growth
Nezar explained that digital transformation is now being directed toward the concept of meaningful connectivity, where access translates into tangible economic growth.
Success is no longer measured by how many MSMEs are online, but by their ability to enhance capacity, expand market reach, and move up the value chain.
However, challenges on the ground are becoming increasingly complex.
While digitalization opens new opportunities, it also introduces new risks.
Many MSMEs are facing mounting pressure from low-cost imported products entering the market through digital platforms.
“In today’s digital landscape, competition from global players is very strong. That’s why our MSMEs must be given equal footing to compete,” he emphasized.
Ensuring Fairness in the Digital Ecosystem
Nezar stressed the importance of fairness within the digital ecosystem, calling for an equal playing field so MSMEs are not disadvantaged by platform dominance or global products.
To address this, the government is exploring more open and integrated approaches.
One potential solution is adopting an open network model similar to India’s Open Network for Digital Commerce (ONDC), which connects multiple platforms and channels into a unified ecosystem.
“Why rely on a single platform when multiple channels can be interconnected? India has implemented this model successfully, boosting MSME sales. We are currently exploring similar approaches,” he explained.
The government recognizes that a shift in strategy is essential.
Rather than focusing on broad programs, policies are now being redesigned to directly address real challenges faced by MSMEs, including logistics, product standards, access to financing, and global market penetration.
“What we should measure is not how many MSMEs are going digital, but whether they are moving up the ladder, becoming more productive, and truly competitive,” Nezar added.
Strengthening MSMEs in the Global Economy
With this new policy direction, digital transformation is expected to go beyond expanding access.
It aims to deliver real economic impact by improving MSME welfare while strengthening Indonesia’s position in the increasingly competitive global market.
Conclusion
Indonesia’s MSME digital transformation is moving beyond connectivity toward building a fair and competitive digital ecosystem. By focusing on meaningful connectivity and equal market access, the government aims to ensure MSMEs can grow sustainably, compete with global players, and contribute more strongly to the national economy.
Read more: Indonesia’s Ministry of Communication Probes Discrepancies in Steam Game Ratings