Digital SME Confidence Index Report 1st Half of 2021

Looking beyond the current crisis, SMEs are gearing up to prosper in the Post-Covid world.

At the beginning of 2021, the business has seen an increase compared to the sales in the 2nd Half of 2020, which are decreased by 33.2%

As the pandemic has not shown any sign to leave anytime soon, the world has begun to settle into the “new normal” life.

Business owners have found formulas and business channels not only to survive but thrive during a pandemic.

Digitalization is essential to facilitate access to finance, markets, and trends in people’s consumption patterns to digital.

Deputy Minister of the Ministry of Cooperatives and SMEs of the Republic of Indonesia, Hanung Harimba Rachman admitted it

 According to data, only SMEs connected to digital platforms have experienced growth since the Covid-19 pandemic in Indonesia. There has been an increase in the number of online transactions by 26%, while SMEs that have not connected to digital platforms have experienced a decrease in revenue

On the other hand, the help from various parties is like a breath of fresh air in unfavorable conditions.

Report Summary

The survey was conducted on 1.376 business owners consisting of various industrial sectors across 34 provinces in Indonesia.

46% of businesses that use hybrid sales channels experienced a higher increase in sales compared to those who only use one channel (either offline or online channel only.)

Sellers who claim to be offline sellers also have digital footprints that prove the use of digital channels is very much needed.

We conduct an online survey using online questionnaires were held in the period March to July 2021, before the second Java-Bali curb.

Our index captured the SME owner’s perception of the actual condition of Sales, Business Growth, Supply Chain, Business Operations, Capital, and also Business Innovation.

Digital SME Confidence Index (THRIVING)

As technological advancement plays an essential role in supporting SMEs in new normal conditions, a new problem has appeared among business owners: fierce competition.

The Normalization of Digital Transformation

Having more sales channels is an advantage, hence being ubiquitous is required to reach more customers.

In order to stay afloat, online sales channels are currently closely related to Digital SMEs.

87% of SMEs selling through Facebook, marketplace, and food delivery never consider themselves as Digital SMEs, only 20% considered themselves digital SMEs.

See the complete Digital SME Confidence Ecosystem (ini dibikin jumplink)

Strengthening the Bond with Customers

The pandemic will indicate how strong your brand image is and how loyal your customer is.

A large number of foreign sellers in the marketplace in Indonesia are believed to be the cause of the decrease in sales from local sellers.

The government closed 13 types of foreign products and created a program called 

“Bangga Buatan Indonesia” to encourage business owners to improve product quality so that they can compete with global products.

Reaching Out the Invisible Hands

Encouraging post-pandemic needs by building systems that maintain business stability during recovery.

  • Financial Relaxation
  • Digital SME is The New Hidden Gem
  • E-commerce Crazy Deals, and Promotion

Dapatkan berbagai informasi seputar Investasi & Keuangan Pribadi lainnya hanya di KoinWorks.

Tentang Penulis
Gina Valerina

Gina Valerina

Gina began her professional journey within the realm of finance, accumulating a wealth of invaluable insights and hands-on experiences. Building upon this extensive background, she uses her expertise to carefully create informative articles. Each article is born from in-depth research and her unwavering dedication to providing her audience with well-verified insights.
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