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.