Boosting the Digitization of MSMEs in Papua, SRC Introduces the “AYO SRC” Apps – After successfully providing digitalization support for Micro, Small and Medium Enterprises (MSMEs) in several cities in Indonesia in the form of the AYO SRC apps, now PT HM Sampoerna Tbk (Sampoerna), through the Sampoerna Retail Community (SRC) traditional grocery store community, has also introduced the application at Eastern Indonesia, one of which is Papua Island.

This step is part of Sampoerna’s commitment to support the Indonesian government’s priority to promote economic growth through digitalization for MSMEs.

In this regard, the Ministry of Trade in collaboration with the Special Staff Team of the President of the Republic of Indonesia, the Kitong Bisa Foundation, and Sampoerna organized MSME Training for Local Young Entrepreneurs in Jayapura.

Through training and digitalization support from Sampoerna, grocery store owners in Papua are expected to be able to develop their businesses, both in terms of products and market access by utilizing innovation and technology in services, stock of goods, and others.

Sampoerna’s Head of Zone East Indonesia, Subur, said that since its formation in 2008, SRC has now grown very rapidly in 34 provinces throughout Indonesia. The grocery stores of SRC members are spread from Sabang to Merauke, and from the west to the far east.

After joining the SRC network, grocery stores recorded an increase in sales transactions of up to 58% and an increase in turnover of up to 54%. In fact, as many as 84% ​​of SRC shop owners get their main source of income from SRC.

“Through Sampoerna’s collaboration with the Ministry of Trade and the Kitong Bisa Foundation, today we officially introduce the AYO SRC apps in Tanah Papua. We believe that the AYO SRC ecosystem as a digital economy development is one of the efforts to encourage the growth of MSMEs in Papua,” said Subur, written on Tuesday (24/5/2022).

Currently, there are 400 grocery stores in Papua that are part of the SRC network, mostly located in Jayapura and Sorong. Subur hopes that, together with SRC, traditional grocery stores will be able to adapt to changing times, especially in the era of digital transformation.

“Each region has the characteristics of MSME products that are different from other regions, as well as products from Papua. Papua has great potential to play a strategic role in the national economy. In order to support the government to encourage economic growth in Papua, collaboration between parties is needed. Therefore, we want to take a role in the development of MSME players here, especially grocery stores,” said Subur.

This application is a digital ecosystem that connects producers, wholesalers, retailers and consumers. In addition, AYO SRC also provides various other services to support business activities in the retail sector.

MSMEs are the pillars of Indonesia’s economic growth. Based on data from the Ministry of Cooperatives and SMEs, the MSME sector contributes more than 61% of the Gross Domestic Product (GDP).

Digitalization is one of the main keys to push the growth of this sector which has the ability to absorb more than 97% of the workforce or around 119.6 million people.

The success of the digital transformation of MSMEs in Indonesia is a shared responsibility. Not only the government, but all relevant stakeholders. The synergy between the government, the private sector, associations, banks, and the community is expected to accelerate the digital transformation of MSMEs.

Digitizing MSMEs is not only beneficial for product sales, but also allows MSMEs to manage finances, to monitor business cash flow, and to obtain raw materials online. That way, digitalization plays an important role for the overall running of the MSME business process.

This effort to digitize MSMEs in the form of grocery stores has proven to have a positive impact on the national and regional economy. SRC Grocery Store is able to contribute Rp 69.3 trillion per year to the national retail gross domestic product (GDP).

“We hope to continue to support government programs, especially related to accelerating national economic recovery, one of which is through digitizing MSMEs under the SRC program,” said Subur.

A Special Staff to the President of the Republic of Indonesia, Billy Mambrasar, expressed his appreciation for the various efforts made by corporations in developing the MSME sector in Indonesia, including the Sampoerna Retail Community program.

“I hope this step can be followed by other companies. The development of the MSME sector can not only be carried out by the government, but also all other stakeholders,” said Billy.

Moreover, he continued, there is currently a positive growth in the Indonesian economy in Quarter I-2022 against Quarter I-2021 of 5.01 percent (y-on-y). The structure of economic growth is still dominated by the Provinces in Java Island at 57.78 percent, while the Maluku and Papua provinces only contributed 2.58 percent.

“This shows that the potential in Maluku and Papua Provinces is still not optimally explored to increase economic growth. One of them is the retail sector, which is the main sector driving household consumption growth,” said Oke.

The pandemic has prompted changes in people’s consumption patterns. People who used to shop had to visit the store in person, now they are getting used to shopping online or online. With just a gadget and credit, people can see various products and make transactions.

Various conveniences to attractive promotions offered by online transactions make people more motivated to shop online.

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