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Home BUSINESS NEWS FROM AROUND THE WORLD

Indonesian government urges MSMEs to adopt AI growth

by 198indonesianews_v2w0tn
August 1, 2025
in BUSINESS NEWS FROM AROUND THE WORLD
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Indonesian government urges MSMEs to adopt AI growth
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Surabaya (ANTARA) – The State-Owned Enterprises (SOEs) Ministry is encouraging Indonesian micro, small, and medium enterprises (MSMEs) to optimize digital technologies, especially artificial intelligence (AI), to expand market reach and enhance business competitiveness.

Loto Srinaita Ginting, the ministry’s expert on finance and MSME development, stressed that digital transformation is key to strengthening supply chains and fostering a more robust industrial ecosystem for Indonesian MSMEs.

“By making the most of the benefits offered by AI, MSMEs can analyze market demands more quickly,” she remarked during a hybrid expo and conference held under the PaDi UMKM (MSMEs’ Digital Market) program in Surabaya City, East Java, on Friday.

She highlighted that AI can assist MSMEs in calculating and projecting raw material stocks and managing production processes more effectively and adaptively.

Furthermore, she expressed belief that this cutting-edge technology could pave the way for integrating data between buyers and sellers, making business processes more precise and responsive to market dynamics.

“Through this activity, the SOEs Ministry aims to promote AI as a means to help MSMEs gain a stronger foothold in industrial supply chains, both on the national and global levels,” Ginting noted.

The official also expressed hope that PaDi UMKM, initiated by the ministry, would serve as an effective platform for Indonesian MSMEs to expand their market access, strengthen their capacity to meet industrial supply chain standards, and assist SOEs in fulfilling procurement needs.

Meanwhile, PaDi UMKM’s Chief Executive Director, Jimmy Karisma, highlighted that around 130 thousand business actors had joined the program’s network, with total transactions reaching Rp18 trillion (around US$1 billion).

“We are here to help small businesses broaden their market reach,” he remarked.

Related news: Karawang deputy district head urges MSME-private sector synergy

Related news: MSME backs MBG as people’s economic movement: Minister

Related news: Ministry plans digital training for creative economy MSMEs

Translator: Astrid F/Fahmi A, Tegar Nurfitra
Editor: Azis Kurmala
Copyright © ANTARA 2025



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