INDONESIA'S MICRO, SMALL, AND MEDIUM ENTERPRISES "ERIGO" STRATEGY TO PARTICIPATE IN GLOBAL VALUE CHAINS THROUGH ECONOMIC DIGITALISATION
Keywords:
global trade, global value chains, economic digitization, MSMEsAbstract
Indonesia is one of the countries that still needs to develop its economic potential in order to continue to compete in the global market. However, the pandemic has made it difficult for the majority of MSMEs to adapt to the 'new normal'. As many as 82.9% of Indonesian MSMEs have experienced the negative impact of the pandemic. On average, these negative impacts are caused by the inability of MSME actors to make changes quickly to adapt to this pandemic situation. Therefore, it is important to carry out economic digitalization of the MSME sector in Indonesia. This paper will be based on the research question "how can the role of government support MSMEs in order to increase competitiveness in contemporary global value chains?". These questions will be answered using a descriptive qualitative approach using the library study method. The findings show that the Indonesian government has formulated a National Digital Economy Standard (SNED) which contains research, development, education and financing. If complied with comprehensively, MSMEs will be able to increase business capabilities and maintain a competitive advantage over local and international business competitors such as Erigo. Even so, there are still many MSMEs that are reluctant or unable to make the transition to digital business so the government must emphasize its role more deeply, especially to face the opening of the Indonesian market to foreign players.
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