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E-commerce adoption boosts Central Java MSME transactions 1.5-fold

Josa Lukman (The Jakarta Post)
Jakarta
Wed, December 15, 2021

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E-commerce adoption boosts Central Java MSME transactions 1.5-fold (Courtesy of Tokopedia)

As the pandemic has driven much of the world online, consumer habits too have shifted accordingly.

While people previously shopped for their regular wants and needs at brick-and-mortar shops, the rapid uptake of remote working and sheltering at home has turned both consumers and businesses into e-commerce platforms.

Indeed, the rise of e-commerce has made it a boon for many local businesses hit by the pandemic. Just ask Sebastian Surya Sutantio, owner of the highly popular sneakers label Patrobas.

Throughout Q3 2021, Patrobas recorded a more than eightfold increase in transactions compared to the first three months of joining homegrown e-commerce platform Tokopedia. The El Clasico sneakers, sold exclusively on Tokopedia, even completely sold out within less than four minutes of being introduced.

Even so, the brand also gave back to the MSME industry, particularly in shoemaking. Patrobas is one of the brands that took part in the Sebelas Melangkah Bareng Never Too Lavish campaign with Tokopedia to benefit the local shoes and footwear industry.

“We have felt much positive impact since joining Tokopedia in 2018, including empowering a number of local shoemakers across the country. Even during the pandemic, we were able to retain our employees, and our revenue even reached tens of millions,” Sebastian said.

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Another merchant that has found renewed success online is Panna Coffee, which was established five years ago. Starting out as a coffee bean supplier, Panna Coffee now processes high-grade beans from farmers across the country, from Aceh to Papua.

Throughout Q3 2021, Panna Coffee more than doubled its amount of transactions compared to the same period last year.

Patrobas and Panna Coffee are just two of the many MSMEs based in Central Java that have benefited from digitalization.

Local heroes on the rise

.
. (Courtesy of Tokopedia/.)

In its efforts to highlight local MSMEs, Tokopedia as part of GoTo Group has introduced the #BangkitBersama (RiseTogether) movement with the theme “Yang Lokal Yang Juara, Bareng Tokopedia” (Local Champions with Tokopedia) in Central Java in collaboration with the Central Java administration.

The #BangkitBersama movement, which was previously introduced in Surakarta and Surabaya, will be further rolled out in other parts of the country. The movement covers a wide array of programs, including oxygen concentrator donations, the Rumah Oksigen Gotong Royong initiative, as well as free vaccinations for MSMEs and driver-partners.

Tokopedia CEO and founder William Tanuwijaya said the movement aimed to increase the competitiveness of local MSMEs, including those based in Central Java, through digitalization so as to become major players in the domestic market.

“At Tokopedia, we will always support the development of local MSMEs through training programs and mentorships, providing a platform for promotions and market expansions, as well as introducing tech-based solutions to increase their business scale,” he said.

According to William, Tokopedia utilizes a hyperlocal approach in its range of innovations, such as specially curated storefronts that are tailored to the needs of each region so as to connect buyers with the nearest sellers.

“This is done to provide local MSMEs across Indonesia with the same opportunities to grow, meaning they don’t have to move to the capital to become champions.”

He also acknowledged the large growth potential of MSMEs in Central Java, noting that the number of transactions by the province’s MSMEs rose by nearly 1.5 times in Q3 2021 compared to the same period last year. At the same time, the number of Central Java-based sellers in Tokopedia also increased nearly 1.5-fold.

Meanwhile, GoSend transactions in the province grew 20 percent year-on-year in August 2020, while GoFood transactions rose 125 percent.

“Through the #BangkitBersama movement’s hyperlocal approach, we hope to strengthen GoTo Group’s contribution to economic recovery,” says GoTo and GoTo Financial CEO Andre Soelistyo.

Throughout the pandemic, more than 4 million business partners have joined the GoTo ecosystem, which consists of Tokopedia, Gojek and GoPay. To date, the ecosystem is now home to more than 11 million business partners, a majority of them local MSMEs.

Tokopedia commissioner Wishnutama said that with the important role of MSMEs in the national economy, collaborations with strategic partners including regional governments were of utmost importance to support local MSMEs in the domestic market.

The #BangkitBersama movement also covers a number of capacity-building programs for Central Java MSMEs, including on production, marketing, branding and business development. These programs include the Sekolah Kilat Seller (SKS), the GoTo Incubation Class with UNS, as well as routine training classes held with a number of government agencies on a city, provincial and regency level.

On a consumer level, the Kumpulan Toko Pilihan (Selected Store Collection) page for Semarang and Surakarta provides attractive deals and offers to bring a more efficient shopping experience for those looking to buy from Central Java MSMEs.

Central Java Governor Ganjar Pranowo said in a statement that the provincial government would always support local MSMEs.

“The #BangkitBersama initiative is in line with our efforts to encourage digitalization among local MSMEs so as to support the region’s economic recovery.” he said.



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