Kadin, 1Engage Sign MoU to Support Transformation of MSMEs Business Paradigm in Indonesia

TEMPO.CO, Jakarta - The Chamber of Commerce and Industry (Kadin) of Indonesia and 1ENGAGE, on Tuesday, January 9, 2024, announced the signing of a Memorandum of Understanding (MoU) to support the transformation of the business paradigm of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia by providing inclusive digital solutions through the e-UMKM Naik Kelas jadi #BintangDigital program, according to a press release received by Tempo on Wednesday.

The strategic partnership between Kadin Indonesia, which is the umbrella organization of the Indonesian industrial and business world, and 1ENGAGE, a marketing tech agency startup as a pioneer of e-UMKM technology solutions, stated to mark a step forward in supporting the growth of online MSMEs by providing equal access to digital solutions.

The MoU underscores collaboration to develop digital solutions that embrace the unique needs of MSMEs. The main focus of the MoU scope is to leverage WhatsApp as the largest messaging platform in Indonesia to be an innovative tool and strategy to expand online operational opportunities for MSMEs, as well as to improve their competitiveness and presence in an inclusive manner.

This is also in line with the inclusive partnership scheme (inclusive loop model) proposed by Kadin Indonesia where MSMEs are facilitated to adopt digital transformation so as to increase productivity with sustainable practices.

Vice Chairman of the Kadin Indonesia Entrepreneurship Division, Aldi Haryopratomo, welcomed the signing of the MoU with 1ENGAGE as one of the inclusive solutions for accelerating the growth of national MSMEs.

“We collaborate with 1ENGAGE based on a shared vision to provide inclusive solutions in supporting the acceleration of the growth of online MSMEs in Indonesia, as well as ensuring that MSMEs can feel the benefits of digital innovation without exception. All MSMEs can also become members of Kadin Indonesia through the e-UMKM program for free and have the opportunity to obtain grant funds to develop their online businesses,” said Aldi.

In the first year, the e-UMKM program aims to bring 1 million Indonesian MSMEs to the next level to become #BintangDigital through online business training and coaching, the use of digital promotional media for business development, and legal protection through the ownership of Nomor Induk Berusaha (NIB).

Aldi added, “The #BintangDigital title will be given to every MSME that successfully develops its business so that it becomes a role model and real aspiration for other entrepreneurs and is able to drive the sustainability of the program. I am very confident in the potential of our MSMEs. So I am sure there will be many #BintangDigital that will orbit from various sectors and provinces throughout Indonesia.”

Yap Kok Leong (KL), CEO at 1ENGAGE, said that they are excited to work with Kadin.

“We are very excited to work with Kadin Indonesia in bringing inclusive solutions that leverage the power of WhatsApp, a messaging channel used by over 200 million Indonesians,” said Yap Kok Leong a.k.a. KL.

However, besides the big role of WhatsApp, KL highlighted three factors to ensure the success of this program, namely:

1. Awareness video to increase MSMEs' awareness of the e-UMKM program

2. online and offline training for guidance on using technology

3. technology-based marketing solutions in the form of customer data platform (CDP) as well as other digital marketing features.

The signing of the MoU is a continuation of the appointment of 1ENGAGE as a marketing technology partner by GSMA APAC and Meta, at the GSMA: M360 APAC event in Seoul in September 2023.

Aldo Rambie, Head of Industry at Meta Indonesia, sees the signing of the MoU as a brilliant solution for improving the digital transformation of MSMEs in Indonesia. “We are certainly very enthusiastic and support the implementation of this cooperation program,” said Aldo.

The partnership built between Kadin Indonesia and 1ENGAGE shows a shared commitment to ensuring that every MSME in Indonesia can leverage inclusive digital solutions, driving sustainable economic growth in the digital era.

The signing of the MoU will be followed by the release of a special digital solution for MSMEs which will be held in February 2024.

TEMPO.CO

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