The micro, small and medium enterprises (MSMEs) are known to be the backbone of Indonesia’s economy, which contributed 57.24% of the country’s total GDP. There are a total 64.2 million of MSMEs businessmen, which absorbs up to 117 millions of manpower – a number that achieves 97% of total labors in Indonesia.
However, it seems that most of Indonesia’s MSMEs businessmen still work in a more traditional way. There were only 15.3 millions of MSMEs involved in the digital ecosystem as per August 2021, according to data by the Cooperative and SMEs Ministry. By the end of 2024, the government targets 30 millions of SMEs to join the digital ecosystem which is in line with the MSMEs Digital Roadmap 2021-2024.
Taking the MSMEs into the digital ecosystem may find some challenges, such as the production aspect, human resources, technology knowledge and business model adoption. Thus, the government will need to support the growth of digital literacy, the increase in production capacity and escalation of quality as well as market access.
On the other hand, there is a lack of digital infrastructure in the remote territories in Indonesia, which hinders the stakeholders in the rural area to adopt digital systems.
Answering to these obstacles, Telkom is ready to utilize its digital network and infrastructures as Indonesia’s biggest telecom company. To support the digital adoption for MSMEs, Telkom together with the State-Owned Enterprises (SOE) Ministry launched PaDi UMKM in August 2020, which will help in easy and painless online transaction experience.
Since the introduction of PaDi UMKM, Telkom has worked as a centralized information manager and business-to-business marketing service. Together with eight SOEs, Telkom acts as an aggregator to transact, develop and help with the onboarding of the eight groups of MSME activities. These MSMEs include those that are involved in the SOE Home development program and the Community Development Center (CDC).
The eight SOEs that collaborates with Telkom are Pembangunan Perumahan (PP), Waskita Karya, Wijaya Karya (Wika), Pupuk Indonesia, PT Pertamina, Bank Rakyat Indonesia (BRI), Pegadaian and Permodalan Nasional Madani (PNM).
Besides, the financing facility programmes are supported by BRI, Pegadaian, and PNM in the initial stage. These financing programmes will be developed by other state-owned banks and financial institutions in the later stages.
Understanding PaDi UMKM
Initiated by the SOE Ministry then developed by Telkom, PaDi UMKM is a digital enabler with various features to facilitate and develop the potential of Indonesia’s economic players, mainly in the MSMEs sector.
PaDi UMKM is the unordinary e-commerce platform, it plays as a mediator and is connecting the high quality SMEs players with SOEs through its four main features:
- PaDi Marketplace
A unique marketplace which facilitates direct purchase from the SOEs to MSMEs, as well as transactions from public retail buyers to the MSMEs.
- PaDi eProcurement
Through TenderBUMN.id, PaDi UMKM provides information related to e-procurement that integrates with a number of SOEs e-procurement systems. Currently, PaDi UMKM is also developing a Vendor Management System, which will provide the SOE’s vendors data and can be used for PaDi UMKM ecosystem needs.
- Invoice FinancingMSMEs that join PaDi UMKM may obtain the financing support, as they may receive orders with 14 days, 30 days and 60 days of payment terms. This feature will help those MSMEs whose invoices are waiting to be paid by SOEs.
- Control Tower Dashboard
The control tower dashboard presents information for the needs of the Ministry of SOEs in monitoring SOE transactions to MSMEs. Those information will include MSMEs data and reports, the SOEs spending for MSMEs, as well as the MSMEs financing.
Why Should You Join PaDi UMKM?
PaDi UMKM is different and not an ordinary e-commerce platform. It focuses on supporting the MSMEs to expand their business via the digital ecosystem, and of course, to support this sector which is said to be the backbone of Indonesia’s economy.
For the SOEs, PaDi UMKM helps them to find the high quality MSME products and services which simplify the government activity.
Meanwhile for the MSME player itself, PaDi UMKM comes with advantages that are troublesome to achieve when using other platforms. Some of them are below:
- A certain access to SOE buyers
- Assurance of payment from SOE buyers
- Direct feedback and product reviews from buyers
- Easy access for financing, as it is supported by the state-owned banks and financial institutions
- Online legal consultation
On the other hand, PaDi UMKM has more advantages over other ecommerce platforms as it is available for both MSMEs products and services. Here is the categories available in PaDi UMKM:
- Construction materials - this category shows MSME products in the construction materials such as wood, aluminum, furniture, iron, precast, paints and its equipment, hand tools, building materials and electric equipment
- Construction and renovation services - this services include construction planning, execution and surveillance of construction, as well as parking area service provider
- Expedition and packaging services - this category will help MSMEs to find packaging services, truck load, sea delivery, air transport delivery, express courier and stamped letter delivery
- Procurement and rental of machine tools - through this category, both MSMEs and SOEs can find available heavy equipment, machines and industrial measuring tools
- Tools and machines maintenance services
- Advertising services - advertising services available in PaDi UMKM include electronic advertising, internet, outdoor as well as non-advertisement broadcast services
- Procurement and rental of furniture equipment - the furniture equipment include office desks and chairs, rack, sofa, mirror, beds, paintings and decorative plants
- Catering and snacks - this include cakes, drinks, snacks, food package and parcels as well as catering services
- Souvenir and merchandise - this category brings various products such as tumblers, clothes, goodie bags, clocks, fan, pens, umbrellas, key chains and others
- Agriculture and animal husbandry - Its products include rice, grain, corns, sago, soybean, salt, meats, eggs, milks, fruits, vegetables, fertilizer, pesticides, plant seeds, cutting machines, animal feeds and wallet supplement
- Procurement and rental of vehicles - Its products vary from bicycle, motorcycle, cars, buses and trucks
- Education and trainings services
- Convection and laundry - This category includes screen printing, embroidery, laundry, and dry cleaning
- Travel and accommodation services - Its travel service includes land transport, sea transport and air transport, while the accommodation category includes hotel, apartment, guest house and mansion house
- Printing and media services
- Vehicle maintenance services – which includes exterior, interior, oil, tire and wheels, paint, GPS and navigation as well as other equipment
- Building maintenance services
- Electric and IT maintenance services – with services for computer and laptops, internet, air conditioner, TV, fridges, water dispensers and microwave
- Foreman and other labour services – which provide daily, monthly and wholesale services
- Event organizer services – this could be provide for corporate gathering, product launching, gala dinner and team building
- Office stationery – which includes stationery, office equipment and work uniforms
- Healthcare-safety equipment and services
- Chemical materials
- Electronics goods, computers and peripheral
- Consulting and appraisal services – which also includes religion services
PaDi UMKM is a complete platform that can be used by MSMEs to boost its business performance and a notably unique e-commerce. Why should you wait to join us?
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