Digital payment to support MSME strengthening

id Legislator,digital payment,system,MSMEs

Digital payment to support MSME strengthening

A member of Commission IX of the House of Representatives (DPR) Mukhamad Misbakhun at the webinar on Tuesday (March 28, 2023). (ANTARA/Imamatul Silfia)

Jakarta (ANTARA) - The development of digital payment methods would help strengthen the micro, small, and medium enterprise (MSME) sector in Indonesia, according to a member of Commission IX of the House of Representatives (DPR) Mukhamad Misbakhun.

"For example, QRIS (Quick Response Code Indonesian Standard). It is very helpful for the digitalization of payment systems so that it helps the strengthening of MSMEs," he said at the webinar, which was followed from here on Tuesday. QRIS has reached more than 20.5 million MSMEs as of October 2022. Misbakhun said that the use of QRIS among MSMEs also includes traders at traditional and modern markets.

According to him, it indicates that the use of QRIS has become increasingly widespread and known by people at various levels. To this end, he opined that MSMEs need to be encouraged to adopt digital transformation so that they can increase their business scale.

Digitalization plays a role in increasing the efficiency of processes, consistency, and quality of a business. If MSMEs enter the digital ecosystem, they can get used to doing business on a digital platform that manages the company appropriately.

MSME players can also modernize their business management and governance. "Thus, they can make progress from micro to small, small to medium, and so on. When this process is carried out, they will get used to building governance in their company," he added.

Baca juga: UMKM modal Indonesia kembangkan ekonomi
Baca juga: BUMN Indra Karya terima Sertifikat INDI 4.0

Apart from MSME digitalization, he called for government budget and policy affirmation for MSMEs. In terms of budget, the government has allotted Rp45.8 trillion for the MSME sector. Meanwhile, in terms of policy, the government has readied various programs, such as credit restructuring and interest subsidies, to support MSMEs.

The legislator further said that Commission XI of the DPR will continue to monitor the government's efforts to support the strengthening of MSMEs' role. Thus, MSMEs would be able to contribute to supporting the national economy, workforce absorption, and the gross domestic product (GDP).