Indonesia, as Southeast Asia’s economic powerhouse, has established a sustainable ecosystem for small and medium-sized enterprises (SME) to thrive; creating dynamics to the country’s growing economic landscape, contributing significantly to GDP growth, employment generation, poverty alleviation, and part of solving solutions to women empowerment. Recognizing the pivotal role, Indonesian SMEs have been in the eye of World Bank Group focus for the last decade, and KUMPUL.ID has committed to supporting this cause.
The World Bank Group has been on a journey to support SMEs, especially those owned by women. For a few years, the World Bank Group has been improving SMEs’ access to financial support and finding innovative solutions for their business to gain more capital. One of the innovations the World Bank Group focusing on is the digitalization of SMEs.
KUMPUL.ID, in collaboration with Microsoft Philanthropies and with the support of the World Bank, has empowered more than 5000 women-owned SMEs across the nation with the PerempuanBijakBerusaha.id program to embrace technology to support their business. This collaboration has provided inclusive learning platforms for these SMEs to access every strategy needed to adopt digital technology to expand their market reach, gaining more capital for their business. More than just about business, this collaboration creates opportunities for women to have better opportunities to develop their capabilities in digital financing, especially for those located in remote areas.
KUMPUL.ID had the chance to bring together impacted SMEs to meet with the World Bank’s representatives and Microsoft Philanthropies in a focus group discussion (FGD) arranged by KUMPUL.ID to gain more insight for SMEs to expand their business, as well as for World Bank’s to gain more understanding on SMEs’ growing digitalization landscape in Indonesia, and how the results of its impact for them.
One of the biggest challenges faced by SMEs in Indonesia is the scarcity of accessible finance. The World Bank Group has been actively providing the support needed to solve this issue, as well as technical assistance and capacity-building programs through this collaborative program, equipping Indonesian SMEs with the tools needed to thrive in today’s fiercely competitive business environment. Entrepreneur mentorship through a series of buddy programs, access to new markets, and digital skills development are some of the key areas of focus as well.
Market expansion is paramount for SMEs to grow even further. The World Bank Group has actively bridged the gap to connect Indonesian SMEs to both domestic and international markets. Through this digital learning platform provided by the collaboration of KUMPUL.ID, Microsoft Philanthropies, and The World Bank Group, SMEs gain the strategies needed to access a wider customer base, diversify their revenue streams, and bolster their competitiveness on a global scale through a digital approach.
These impacted SMEs have witnessed tangible improvements in their growth in embracing digitalization and innovation, thereby enhancing their resilience in today’s rapidly evolving business landscape.
Through this program, The World Bank Group’s relentless commitment to supporting a sustainable SME ecosystem in Indonesia has paved the way for transformative change. Women-owned SMEs are now better equipped to surmount challenges and seize opportunities using technology to harness full market potential.
As Indonesia strides forward in its quest for inclusive and sustainable economic development, the partnership between the World Bank Group and KUMPUL.ID is pivotal in nurturing a thriving SME sector.