MSMEs need to adapt to technological disruption: Indonesian VP

MSMEs need to adapt to technological disruption: Indonesian VP

Jakarta, The Gulf Observer: Vice President Ma’ruf Amin has said that micro, small, and medium enterprises (MSMEs) need to adapt to technological disruptions in response to reports of Tanah Abang Market, Central Jakarta, being severely affected by digital markets.

“Not long ago, we faced a sad fact that conventional markets, such as Tanah Abang Market, were eroded by the digital market,” he noted in his speech at the annual meeting of the Sharia Supervisory Board, which was broadcast on the Vice Presidential Secretariat’s YouTube channel and accessed from here on Friday.

According to him, digital technology and innovation are driving factors of the current disruption of the global economy.

He said that economic disruption is inevitable and economic players who do not adjust to the current digital advancement will be affected.

“In fact, almost all traders at conventional markets are MSMEs. Therefore, business actors, especially MSMEs, must immediately have the awareness to prepare and be adaptive to the dynamics of the times and the challenges of disruption,” he said.

The sharia economic and financial sector has also been disrupted by the current technological advances, and this needs to be responded to through mitigation efforts, he added.

“We need to be grateful; the sharia economy and finance have recorded a positive trend in recent years,” he said.

According to Amin, the unique, inclusive, and universal sharia economy offers alternative choices for running the economy.

“Although, these positive achievements are still not enough compared to the actual potential and strength of the national sharia economy,” he said.

It is necessary for MSMEs to adjust amid the economic disruptions, while at the same time, increase sharia economy literacy, he added.

“Literacy is a very important factor and is one of the keys to accelerate the growth of the national sharia economy and finance,” he said.