MSME Entrepreneur: Collaboration and Digital Technology are the Keys to Success in Developing Products Based on Local Wisdom

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Small-Medium Enterprise (SME) entrepreneurs remain buoyant and productive in the midst of the pandemic by relying on local potential

JAKARTA, Indonesia, Dec. 2, 2020 /PRNewswire/ — In the midst of the major challenges posed by the Covid-19 pandemic towards businesses, a number of micro, small and medium enterprises (MSMEs) remain adaptive and innovative. They collaborate and rely on digital technology to market their products based on local wisdom. This was discussed at the webinar held by the Covid-19 Handling and National Economic Recovery Committee (KPCPEN) titled “The Pandemic and Business Opportunities Based on Local Wisdom”, on Friday (27/11/2020).

The Pandemic and Business Opportunities Based on Local Wisdom.
The Pandemic and Business Opportunities Based on Local Wisdom.

Denden Sofiudin, a coffee business owner in Temanggung, bears witness to this strategy in developing his business that was established in 2015. He founded the Rumah Kopi Temanggung to help promote coffee and tobacco produced by local farmers.

“Technically speaking, I initially didn’t have basic knowledge of coffee. However, I am well versed in the digital world. So, I tried to offer locally-produced coffee in Temanggung via online platforms, and the market response turned out quite well,” said Denden during the KPCPEN Webinar last Friday.

After being successful, Denden invited a number of his friends to do the same things. He even helped his friends by taking advantage of digital technology which is now widely available for free.

“I’ve made a number of location coordinates for them on Google Maps, with the keyword ‘Kopi Temanggung’. Hopefully, anyone who passes through Temanggung is interested to try the coffee. They can simply search for the seller’s location on Google Maps and then choose a coffee seller that suits their taste,” explained Denden, adding that collaboration is an absolute must in developing local businesses.

His efforts to market coffee online have positively bore fruit even in the midst of the pandemic. According to Denden almost all Rumah Kopi Temanggung sales are done through online channels. “Distribution and 95% of Rumah Kopi Temanggung sales come from online channels,” said Denden.

More Than Just Digital Marketing

Satya Bilal, Deputy Secretary General of the International Council for Small Business for the Yogyakarta chapter said that MSMEs should not only dwell on digital marketing. They also need to hone some other skills such as: First, on how to seek and increase access to financing (loans/capital); Second, on how to further develop their human capital (employees); Third, on how to collaborate; Fourth, on how to innovate; and Fifth, on how to make professional financial reports.

“MSME entrepreneurs must improve their professionalism as business people. They also need to further hone in on their business instincts. If previously we were satisfied with gaining Rp 100 in profit, we must continue to drive ourselves to achieve more. Business adaptation must always be done so that we can survive in the midst of the pandemic. Budget usage must be right on target,” said Satya.

“There are so many creative economy sectors that are developing. In Eastern Indonesia, for example, there are so many aquatic animals, and the aquascape businesses that sprang up during the pandemic. There are many SMEs that are developing. There is a local brand, Sociolla, that after being developed for five years it has then managed to expand to Vietnam,” he said again.

With the richness of local culture and potential in Indonesia’s regions, business opportunities are still wide open for SME entrepreneurs. Mastery of digital technology and in managing a business are two aspects that are the keys to success in developing business in the era of the pandemic.

About KPCPEN

Based on the consideration that the handling of Coronavirus Disease 2019 (Covid-19) and the national economy recovery must be aligned in one integrated and inseparable strategic policy, President Joko Widodo issued Presidential Regulation (Perpres) No. 82 of 2020 on the Covid-19 Handling and National Economic Recovery Committee (KPCPEN) signed on July 20 2020.

The KPCPEN priorities respectively are INDONESIA SEHAT (Priority for people to be safe from Covid-19 and reforming health services), INDONESIA BEKERJA (Priority for empowerment and acceleration of employment), INDONESIA TUMBUH (Priority for national economy recovery and transformation).

Media Contact:

Communication Team of the Covid-19 Handling and National Economic Recovery Committee (KPCPEN)
Lalu Hamdani  081284519595 / 081212865928
Email: media-kpcpen@covid19.go.id

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