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Jakarta Post

MSMEs face challenges to sell products online

  • The Jakarta Post

Jakarta   /   Mon, August 19 2019   /  01:26 am

While millions of individual traders have benefited from selling their products on Indonesia’s growing number of online marketplaces, many micro, small and medium enterprises (MSMEs) are struggling to make the switch from conventional trading.According to a study conducted by the Communications and Information Ministry, only 17 percent of the country’s 56 million MSMEs use e-commerce platforms to sell their products.The researchers said financial constraints and a lack of IT knowledge prevented MSMEs from taking their businesses online. Bastian Zaini, a researcher at the nonprofit research foundation Laboratorium Data Persada, said the main challenges MSMEs faced entering digital market places were financial considerations owing to the costs of shifting from conventional practices to online trading.“The biggest challenge are the costs of transitioning to digital marketplaces, which...