KemenkopUKM Pushing UMKM Digitalization Through Mentoring Programs

JAKARTA – The Ministry of Small-to-Medium Scale Businesses (UKM) and Cooperatives (KemenkopUKM) is currently developing its MicroMentor Indonesia program, a voluntary desk program which invites business experts to mentor micro-to-small-to-medium scale businesses (UMKM) to help them upgrade their businesses.  

Currently, the MicroMentor Indonesia program have recruited 10,000 mentors and have reached 40,000 UMKMs.

UKM Minister Teten Masduki said that UMKMs act as the pedestal for Indonesia’s economy during the ongoing COVID-19 pandemic, with its digitalization being highlighted as the main development strategy.

“UMKMs need the assistance and knowledge of mentors in order to accelerate their development,” Minister Teten said in a written statement on Thursday (11/3).

The Minister added that Indonesia’s digital economy holds immense potential, with a projected value of Rp 1800 trillion in 2025.

“So, don’t let our digital market economy be dominated by foreign players! UMKMs must become the kings of their own land. I believe that Indonesia is home to countless talented people who are able to help UMKMs develop further and I believe that solidarity efforts such as this mentoring program will be beneficial for everyone,” he added.

MicroMentor Indonesia will train and assist UMKMs using the MicroMentor Indonesia platform, which is based on the ministry’s digital training program found on edukukm.id.

“We implore Indonesians who are knowledgeable in production marketing to join us in becoming volunteer mentors to help UMKMs increase the quality of their products. I believe a lot of people are willing to help UMKMs but to make it effective and possible, the teaching system must be easy to understand,” Minister Teten explained.

The minister elaborated further that this program will also accelerate the creation of new businesses and make more people business owners. The number of entrepreneurs in Indonesia is still relatively small compared to other countries, with only 3.7% of the population.

“We are targeting to increase that figure to 4% by 2024. We will do it not only through assistance programs but also with ideas such as venture capital schemes, for example,” he said.