The Role of Government in Facilitating Digital Economy for Micro, Small, and Medium Enterprises

Abstract

Micro, small, and medium enterprises (MSMEs) play a significant part in boosting economic growth and raising the standard of living in Indonesia, particularly during and after the COVID-19 pandemic. Moreover, these MSME roles are increasingly strengthened using digital technology and through partnerships between local governments and private digital platforms. Thus, both the central and local governments have made progressive efforts to emphasize strengthening MSMEs, especially the digitalization of MSMEs. Despite the government's high attention to MSMEs, based on quantitative and qualitative research, it was found that the government's program to strengthen the role of MSMEs in the digital world does not appear to be running optimally. There are three main problems with the program: government programs for business actors have not been accessed evenly, data on national MSMEs has not been integrated, and the MSME digitalization program between the central and regional governments has not been optimally coordinated. Therefore, a comprehensive plan and coordination run by the governments must be created to solve these issues.