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Proudly Made in Indonesia 2023, Ministry of Trade Encourages Digitalization of West Papua MSMEs

Jakarta – Deputy Minister Jerry Sambuaga stated that one of the efforts for Indonesia to upgrade and become a developed country in addition to always being adaptive to the development of digitalization is to market Indonesian products in the global market. For this reason, the government through the Ministry of Trade continues to encourage the digitization of micro, small and medium enterprises (MSMEs), especially West Papua, to increase the competitiveness of West Papua MSMEs.

“Digitalization is a form of adaptation. Related to Bangga Buatan Indonesia (BBI, Proudly Made in Indonesia) 2023, the Ministry of Trade continues to encourage digitalization by building an ecosystem of partnerships with micro, small and medium enterprises (MSMEs), marketplaces, and financing institutions to support the marketing of Indonesian products, especially West Papua MSMEs,” explained Deputy Trade Minister Jerry in the opening of the web seminar “Bangga Buatan Indonesia, Papua Barat Mendunia” in Jakarta yesterday, Monday (12/6).

Deputy Minister of Trade Jerry views that digitalization of business actors needs to be intensively carried out. Especially since the Covid-19 pandemic hit, there has been a change in people’s shopping patterns who prefer to shop online, demanding that entrepreneurs must be adaptive and able to keep up with market developments.

“The number of businesses that have entered the digital ecosystem (onboarding) by the end of 2022 is more than 20 million MSMEs. For this reason, I am optimistic that the target of 30 million MSMEs onboarding by 2024 can be achieved,” added Deputy Trade Minister Jerry.

Based on data processed by the Ministry of Trade, Indonesia’s Digital Economy is estimated to reach USD77 billion in 2022 or 39.7 percent of the ASEAN Digital Economy. Even in 2025, the value is projected to increase to Rp130 billion.

The value of electronic commerce transactions (e-commerce) in 2022 has also reached Rp476.3 trillion. In 2023, the value is projected by Bank Indonesia to increase to Rp572 trillion, an increase of around 20 percent compared to 2022. Even in 2025, the e-commerce sector is expected to grow consistently by around 17-22 percent.

Deputy Trade Minister Jerry said that the Ministry of Trade continues to make various efforts to maintain trade performance. These efforts are realized through various promotional activities, trade missions, and trade cooperation through Preferential Trade Agreement (PTA), Free Trade Agreement (FTA), and Comprehensive Economic Partnership Agreement (CEPA) schemes.

Deputy Trade Minister Jerry revealed that Indonesia already has 35 agreements, including 9 bilateral agreements. “These trade agreements can be utilized as toll ways or government facilities for Indonesian MSME players to increase international market access,” added Jerry.

The webinar was held by the Ministry of Trade in collaboration with Tribun Network to promote the National Movement of Proud to be Made in Indonesia (Gernas BBI) and Proud to Travel in Indonesia (BWI) in West Papua. In other words, promoting superior products and tourism in West Papua so that the target number of products onboarded and sales transactions through market locations and tourist visits in West Papua can be achieved.

It is hoped that BBI can encourage more MSME players who are able to open up jobs and bring prosperity to the community and bring national businesses to triumph in the global market.

Deputy Trade Minister Jerry also asked for full support and participation from all Indonesian people to become heroes in their own country, by continuing to buy and use products made in Indonesia. “On various occasions and especially today, I wear Indonesian products. Starting from shoes, watches, glasses, pants, to batik shirts with Papuan motifs. It is hoped that the Indonesian people will not only be proud of Indonesian products, but also buy and wear products made in Indonesia,” said Deputy Minister of Trade Jerry.

Also attending the webinar were Acting Governor of West Papua Paulus Waterpauw; Director General of Domestic Trade Isy Karim; Deputy for Tourism and Creative Economy of the Coordinating Ministry for Maritime Affairs and Investment Mr. Odo R.M Manuhutu; Deputy Chief Representative of Bank Indonesia West Papua Province Roni Cahyadi; Acting Regional Secretary of West Papua Dance Sangkek; and Director of Digital Business of PT Telkom Indonesia (Persero) Tbk Fajrin Rasyid.

Furthermore, Miss Indonesia West Papua 2023 Veronica Angelina, Project Manager of Papua Youth Creative Hub (PYCH) Willy Dares Sombuk. Acting as moderator News Director of Tribun Network, Debby Mahendra Putr and host Paramita Soemantri.

In his presentation, Director General of PDN Isy Karim said that Gernas BBI was inaugurated by President Joko Widodo on May 14, 2020. In 2023, the Ministry of Trade became the campaign manager with the Ministry of Environment and Forestry in BBI and BWI West Papua 2023.

“West Papua has tremendous potential to be raised, such as agriculture, mining, forest products, and nature tourism. Its economic potential was recorded to grow 3.13 percent in the first quarter of 2023. The exports of West Papua in March 2022 were recorded at USD 211.77 million and March 2023 at USD 279.4 million. That is, it grew 31.4 percent year-on-year,” Karim explained.

Karim continued that the government has provided a number of supports for West Papua MSMEs related to BBI and BWI. First, technical guidance on product development and business capacity. Second, mall-to-mall exhibitions of West Papua’s superior products. Third, onboarding West Papua MSMEs to the PaDI MSME and Digipay marketplaces.

Fourth, entrepreneurial technical guidance for food processing and transportation SMEs involving 40 West Papua SMEs. Fifth, the Ramadan Festival in Manokwari 2023 involving 20 food, wastra, craft, and herbal SMEs. Sixth, a bazaar involving 21 West Papua MSMEs. Seventh, Manokwari culinary tourism involving 100 culinary MSMEs.

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