Abstract:
Micro, small, and medium enterprises (MSMEs) are the most important pillar of the
Indonesian economy. Based on data from the Ministry of Cooperatives and SMEs, the
number of MSMEs currently stands at 64.2 million with an annual contribution to GDP
of 61.07%, IDR 8,573.89 trillion. The contribution of MSMEs to the Indonesian economy
includes the ability to absorb 97% of the total existing workforce and raise 60.4% of total
investment. However, the MSMEs in Indonesia aren’t immune to existing challenges.
The contribution of MSMEs to the economic cycle in Indonesia is quite large, reaching
90% every year. There are 19,000 MSME business units in Makassar City, dominated by
the culinary sector. The regional government is committed to supporting MSMEs in the
era of digitalization and global competition through Society Era 5.0. By increasing the
ability of MSMEs to utilize e-commerce, it is hoped that the sector can grow and
contribute significantly to the economy of Makassar City. The impact of the COVID-19
pandemic has encouraged a shift in the consumption patterns of goods and services from
offline to online, with an increase in internet traffic of around 15%–20%. This momentum
will accelerate digital transformation. Indonesia's digital economic potential is still wide
open with the fourth largest population in the world and an internet penetration that has
reached 196.7 million people.
