INDEF Survey: Many MSMEs Prioritize Selling Through Digital Applications

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Adi Ahdiat 29/01/2024 14:03 WIB

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According to an INDEF survey, many Indonesian MSMEs use digital applications as their primary sales platform.

Proportion of UMKM Respondents Based on Main Place of Business (December 2023)

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Proportion of UMKM Respondents Based on Main Place of Business (December 2023)

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Digital applications such as social media and e-commerce play a significant role for Indonesian micro, small, and medium enterprises (MSMEs).

This is evident from the report "The Role of Digital Platforms in the Development of MSMEs in Indonesia," released by the INDEF research institute.

In December 2023, INDEF surveyed 254 MSMEs spread across Jabodetabek (30%), non-Jabodetabek Java (50%), and outside Java (20%).

These MSMEs were selected using non-probability sampling through purposive sampling technique.

The results showed that 33.86% of respondent MSMEs that initially only sold offline have now expanded their business online.

Furthermore, 61.02% of respondent MSMEs utilized both offline and online promotional media from the start of their business, and 5.12% utilized digital channels as their sole means of selling.

"The three main reasons MSMEs implement digitalization in their businesses are the practicality of selling online (79.13%), wider exposure or traffic (72.83%), and the potential for faster business growth (69.69%)," said the INDEF team in their press release on Thursday (25/1/2024).

INDEF also found that, of all the MSMEs involved in this survey, the majority use digital applications such as social media and e-commerce as their primary sales channels (34.25%).

However, many MSMEs still prioritize offline sales, especially in shop houses (32.28%) and small grocery stores/shops (18.11%).

Meanwhile, respondents who prioritized selling in shopping malls, traditional markets, their own websites, or exhibitions/bazaars had smaller proportions, as shown in the graph.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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INDEF Survey: Many MSMEs Prioritize Selling Through Digital Applications

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