THE ROLE OF ENABLERS IN SUPPORTING THE SUCCESS OF MSME DIGITAL TRANSFORMATION

Abstract

Background - Digital transformation, the process of integrating technology in business, is essential for MSMEs to improve efficiency and competitiveness. Based on an IDC survey in 2020, Indonesia is still at the Digital Indifferent stage, where the majority of MSMEs in Indonesia still lack of digital skills. To overcome this, the role of enablers such as technology platforms, government agencies, financial institutions, and business consulting service providers is needed as facilitators in supporting technology adoption for MSMEs.

Purpose - This study aims to evaluate the role of enablers in the digital transformation process of MSMEs in Indonesia

methodology - This study is conducted with Literature Review method.
Findings - The results show that collaboration between the private sector and the government strengthens technological infrastructure, accelerates digital adoption, and creates a conducive environment for effective digital transformation of MSMEs. Government support such as tax incentives and special financing, as well as digital training and education programs by enablers help improve the digital literacy and digital transformation process of MSMEs.

Originality - This research discussed all types of enablers, their role in the digital transformation of MSME in Indonesia, and the form of collaboration between enablers, while previous research only discussed one type of enabler.