The Indonesian government, has announced in a press release from the Coordinator Ministry for the Economy its E-commerce Road Map, which will be a national program. The program which involves government, professionals in e-commerce, and also small retailers classified as Micro, Small, and Medium Enterprises (Usaha Mikro, Kecil, dan Menengah or UMKM), will be continued in a plan to open the e-marketplace for foreign investors.
In an article published in Kompas.com recently, Giovanni Mofsol Muhammad, a Partner in HPRP, said that marketing and access to the market are important factors for developing UMKM in Indonesia. With its large population (4th in the world), Indonesia is a huge market that has the potential to provide significant benefits for major businesses. Moreover, with so many people as internet and social media users, the e-marketplace is the best way for UMKM development. It’s significant not only for producers and the e-commerce industry in Indonesia, but also for investors in this sector, including foreign investors.
Furthermore, the article also explained more benefits of the e-marketplace concept for UMKM in Indonesia. They will have large market coverage, simpler logistics, and lower labor, marketing, and technology costs. Consumers will have a greater variety of goods they need at lower prices. In the end, more benefits for all will increase the welfare for everyone.