The Government's Policy in Encouraging the Global Competitiveness of Indonesian MSMEs through the Digital Ecosystem

Abstract

Digital platforms or marketplaces are part of digital economy which is very developed in Indonesia. This digital economy can be an advantage for Indonesian MSMEs, as one of the potential economic driving actors. But in its development there are still many limitations. There are several problems that require political policy intervention, while these problems are rarely researched.
 Aims: This research is conducted to analyze how the government’s policy in encouraging the global competitiveness of Indonesian MSMEs through the digital ecosystem.
 Methodology: This is a descriptive qualitative research, using library research methods. Data collected then described the situation or the phenomena in detail using descriptive analysis methods.
 Results: To encouraging the global competitiveness of Indonesian MSMEs, the government launched MSMEs go global and go digital through synergies between various main players to provide financing, coaching and markets. The government establishes policies that lead to increased technological progress, socioeconomic adjustments by utilizing geopolitics, and supports environmental changes that encourage MSMEs to adapt to the digital ecosystem.
 Conclusion: The government as regulatory institutions need to ensure those providing digital ecosystem apply sufficient protection to the MSMEs growth. As the digital economy spreads around the world, it will be interesting to see how businesses adjust, adapt and adopt available digital tools to their daily activities. It is important about how the government policy of a nation respond this phenomena, while the whole economy becomes more digitally inter-connected going forward.

The Relationship between Startup Incubator Development and Venture Capital Investment on Digital Economic Growth in Indonesia

“…The Indonesian startup ecosystem has witnessed rapid growth and evolution in recent years, propelled by factors such as demographic trends, increasing internet penetration, and favorable regulatory environments. The country's young and digitally-native population represents a vast market for digital products and services, creating opportunities for startups to innovate and scale rapidly [7], [24]- [26].…”

“…Programs such as tax incentives for startups, regulatory reforms to promote venture capital investment, and initiatives to improve digital infrastructure have created an enabling environment for startup formation and growth. As a result, Indonesia has emerged as a regional hub for digital innovation, attracting both domestic and international investors seeking opportunities in the rapidly expanding digital economy [7], [24]- [26].…”

“…Indonesia's digital economy has grown rapidly due to several factors such as a supportive regulatory framework [6], government policies that encourage global competitiveness for MSMEs [7], and a focus on digital innovation [8]. The startup ecosystem in Indonesia has grown rapidly, with legal challenges being addressed to facilitate growth [9].…”

The Effect of E-commerce Platforms, Digital Marketing, and User Experience on Market Reach and Competitiveness of Indonesian MSMEs

“…Evidence suggests that the user experience offered by Indonesian MSMEs' digital platforms and their overall performance in the market are significantly positively correlated. The performance of MSMEs in Indonesia has been proven to benefit from digitalization capabilities, digital literacy, marketing capabilities, and digital marketing (Haqqi, 2023;Muhammad & Indarwati, 2023;Sudirjo et al, 2023;Sudrajad et al, 2023). Digital marketing in particular has been noted as a possible enabler for MSMEs to undergo digital transformation, enhancing their capacity for change and boosting market performance as a whole (Ananda et al, 2023).…”

The Impact of Trust in Platform Providers on User Participation and Economic Benefits in the Sharing Economy in Indonesia

“…It is also important for the government to ensure that the digital ecosystem provides sufficient protection to the growth of MSMEs in the digital economy [1]. Additionally, policy actors recommend making regional level regulations that technically regulate online transportation according to the area conditions to address licensing issues and other problems related to online transportation [5]. Furthermore, trust in online shopping, website security, and trust in the digital ecosystem are significant factors influencing the adoption of e-commerce technology among Indonesian MSMEs [6], [7].…”