This is the UMKM sector that widely utilizes digital technology.

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Adi Ahdiat 14/11/2022 16:30 WIB

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According to a Boston Consulting Group (BCG) survey, food and beverage MSMEs have the highest adoption rate of digital technology compared to MSMEs in other sectors.

Proportion of MSMEs Utilizing Digital Technology by Sector (August 2022)

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Proportion of MSMEs Utilizing Digital Technology by Sector (August 2022)

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According to a report by the Boston Consulting Group (BCG) and Telkom Indonesia, micro, small, and medium enterprises (MSMEs) in the food and beverage sector have the highest adoption of digital technology compared to other sectors.

Of the approximately 3,700 local MSMEs surveyed, 71% of respondents in the food and beverage sector utilized digital technology to find suppliers, and 69% used it to reach customers. This is the highest percentage compared to other sectors.

However, only 26% of food and beverage MSMEs respondents have digitized their business processes, and only 23% use market analysis tools (digital tools and analytics).

A similar pattern was found in other sectors, where digital technology is generally used more for supply and sales to consumers, with percentages ranging from 50% to 70%, while business digitalization and market analysis are only in the 20% to 30% range.

According to this survey, the majority of MSMEs respondents struggle with digital transformation due to financing issues.

To improve the digitalization performance of MSMEs, BCG provides various recommendations, ranging from utilizing market research data to improving access to digital financing.

"Data-driven decision-making can assist in product design, attracting market segments, and helping target sales to the right customers," BCG stated in its report.

"Digital technology can also be used to identify MSMEs that qualify for financing. This digital approach can help simplify the financing process, making it easier and faster," it continued.

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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