SOEs Ministry Urges Indonesian MSMEs to Boost Competitiveness with AI and Digital Technologies

The SOEs Ministry urges Indonesian MSMEs to adopt AI for better market reach and efficient production. PaDi UMKM supports over 130,000 businesses with digital tools and expanded transactions.

Categorized in: AI News Government
Published on: Aug 02, 2025
SOEs Ministry Urges Indonesian MSMEs to Boost Competitiveness with AI and Digital Technologies

SOEs Ministry Urges MSMEs to Leverage Digital Technologies for Growth

Surabaya – The Ministry of State-Owned Enterprises (SOEs) is calling on Indonesian micro, small, and medium enterprises (MSMEs) to adopt digital technologies, particularly artificial intelligence (AI), to boost market reach and improve competitiveness. This push is intended to strengthen the industrial ecosystem by enhancing supply chain capabilities.

Loto Srinaita Ginting, an expert on finance and MSME development at the ministry, emphasized that digital transformation is essential for MSMEs to respond quickly to market demands. Speaking at a hybrid expo and conference in Surabaya as part of the PaDi UMKM (MSMEs’ Digital Market) program, she explained that AI tools enable faster analysis and better planning.

AI Supports Efficient Production and Inventory Management

Ginting pointed out that AI can help MSMEs calculate and forecast raw material stocks and manage production processes more effectively. This adaptability allows businesses to optimize resources and reduce waste. She also highlighted AI’s potential to connect data from buyers and sellers, making transactions more accurate and responsive to market changes.

“The SOEs Ministry promotes AI to help MSMEs secure stronger positions within industrial supply chains at both national and international levels,” Ginting said. The ministry hopes that PaDi UMKM will continue to be a platform that expands market access and helps MSMEs meet supply chain standards required by SOEs.

PaDi UMKM Expands Network, Boosts Transactions

Jimmy Karisma, Chief Executive Director of PaDi UMKM, shared that around 130,000 business actors have joined the program, with transactions totaling approximately Rp18 trillion (about US$1 billion). This growth reflects the program’s goal of assisting small businesses in broadening their market presence.

  • Encouraging MSMEs to adopt AI for market analysis and production planning
  • Facilitating data integration between buyers and sellers for efficient transactions
  • Providing a digital marketplace platform through PaDi UMKM

For government officials involved in MSME development and digital transformation initiatives, supporting and promoting AI adoption in micro and small businesses can enhance economic resilience and supply chain efficiency. Learning more about AI tools and courses can be valuable for effective implementation. Resources like Complete AI Training’s latest AI courses offer practical guidance on integrating AI technologies.


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