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SIRCLO Support in Accelerating Digital Transformation for the MSME

SIRCLO Support in Accelerating Digital Transformation for the MSME

This strategic step that became homework for many parties was also welcomed by SIRCLO – a technology company that provides eCommerce solutions, whose mission is to help Indonesian businesses sell in the digital realm. 

In responding to the pandemic situation which has begun to enter its second year, encouraging economic recovery has become one of the important agendas of many domestic parties. 

One of the boosted economic recovery strategies comes from the Micro, Small and Medium Enterprises (MSME) industry, with digitization being the key. 

SIRCLO Support in Accelerating Digital Transformation for the MSME

As a sector that is heavily affected, MSMEs actually have a big role in the wheels of the Indonesian economy, with a contribution value of more than IDR 8,500 trillion. 

According to data released by the Indonesian MSME Association, the pandemic has greatly suppressed the contribution of the MSME sector to Indonesia’s GDP in 2020, which fell to 37.3%, quite far when compared to 2019 with a contribution of 60.3%. 

Digitalization is believed to be an essential step, in accordance with the government’s target of connecting 30 million MSMEs online by 2024. 

Launching Program for MSME Business Acceleration 

Through the #MerdekaJualanOnline program, SIRCLO aims to accelerate the MSME industry, while at the same time providing a positive impact on the country’s economic recovery. 

The #MerdekaJualanOnline program, which was launched by SIRCLO in August 2021, presents an online sales module, which includes the provision and training of technology for MSME players. 

The support in question is in the form of integrated technology solutions for managing the SIRCLO Store online store, as well as intensive training about running a business in the online realm covering various aspects of business operations such as; training in content marketing, digital marketing, finance, legal, and so on. 

SIRCLO Support in Accelerating Digital Transformation for the MSME

On his official website, Brian Marshal as Founder & CEO of SIRCLO said, this program was deliberately prepared to not only make MSME players able to survive, but also open up opportunities for growth in the midst of economic uncertainty. 

The strategy implemented by SIRCLO may be in line with various findings and conditions in the Indonesian MSME industry landscape. 

Most MSME actors from various types of businesses admit that they are still experiencing difficulties in promoting the products and services offered. This challenge must be answered with a digital approach. 

Global consulting firm Mckinsey & Company estimates that digitalization in the MSME sector should be adapted to encourage the contribution of the MSME sector to Indonesia’s GDP, which is projected to reach US$ 140 billion in 2030. 

Business Actors Are Encouraged to Go Digital Due to the Pandemic 

In a survey of 100 people conducted from May to June, 83% of MSME players in 6 big cities in Indonesia (Jakarta, Surabaya, Bandung, Medan, Makassar and Denpasar) admitted to using online platforms to support their business. 

Interestingly, the survey also found that MSME actors use technology for various things to support their business, such as implementing online buying and selling channels, digital payment services, logistics, and utilizing SaaS services for financial recording needs, taxes, and the like. 

SIRCLO Support in Accelerating Digital Transformation for the MSME

SIRCLO also reported good growth related to business digitization. In their report, in March 2021 yesterday, the number of business people who joined the SIRCLO platform increased by 130%. 

Most of them are dominated by MSME business actors who come from various types of retail businesses such as fashion, culinary, to household products. 

It is increasingly clear that digital transformation plays an essential role in equipping the MSME industry in dealing with the ongoing pandemic situation, as well as preparing for business acceleration ahead of the post-pandemic situation with a significant growth target. 

Although the positive trend of digitalization is underway, commitment and seriousness must be shown from the relevant stakeholders to further accelerate this growth.