The latest National Financial Inclusion Survey (2021), a collaboration between the Coordinating Ministry for the Economy and Bank Indonesia, shows a positive trend in Indonesia’s financial inclusion. This survey noted that 83.6 percent of Indonesians have access to formal financial products and services (the key indicator of Indonesia’s financial inclusion), up from 81.4 percent in the previous year.
Nevertheless, the figures drop significantly if we consider SMEs’ utilization of digital technology for business operations, either for marketing, sales, payments, or financing. Only 12-15 percent of small and medium enterprises (SMEs) use digital platforms for marketing their products/services, even though almost half of the consumers use digital platforms as a reference when looking for or buying goods. There is a mismatch between the supply and demand sides here. This shows…
