News & Updates

HPRP Updates

HPRP’s Partner, Giovanni Mofsol Muhammad, Authored an Opinion Piece, Titled “E-commerce, Foreign Investors, and the Development of Micro, Small, Medium Enterprises” for the Kompas.com

March 22, 2016

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.

You can find the complete article (in Bahasa) here.