Digitalization of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are essential in increasing national economic growth. The emergence of the digital economy has become a benchmark in implementing digitalization for MSMEs in Indonesia. Thus, this research aims to analyze the application of digitalization to MSMEs in Indonesia. The data used in the analysis of related topics is taken from various literature, both from journal articles and books. Data from various sources were then analyzed using a systematic literature review approach. The results of this analysis found that the current application of digital marketing is a new opportunity for the development of MSMEs in Indonesia. Therefore, the government’s role in supporting the digitalization of MSMEs in Indonesia is important. Results show that the application of digitalization has a positive influence on MSMEs in Indonesia and based on the analysis it has been found that many MSME are utilizing digital technology to develop their businesses. The implementation of digitalization provides business sustainability, innovation, and the opportunity to compete with large businesses in the city. Therefore, the analysis found that the implementation of digitalization of MSMEs in Indonesia is very necessary in the era of society 4.0. Keywords: digitalization, MSMEs, digital marketing, economic growth