Jakarta, CNBC Indonesia – In an effort to advance MSMEs, Minister of Cooperatives and SMEs (MenKopUKM) Teten Masduki said Indonesia needs to learn from the policies implemented by China. According to him, there are four things that need to be regulated in the digital transformation policy.

The digital transformation policies referred to by Teten include regulations regarding platforms for business, regulation of the flow of consumer goods imports, regulation of trading systems, and the need to increase the competitiveness of domestic MSME products.

“Our benchmark is China. Because the existence of digital platforms can be an opportunity, it can also be a threat. If we master technology, we can colonize a country,” said Teten in his written statement, as quoted on Tuesday (24/10/2023).

According to Teten, China is strengthening its digital economic platform so that it cannot be penetrated by external platforms.

“Google couldn’t enter, and China created Baidu as their search engine, and various other efforts. Now, TikTok, which was made in China, has controlled all countries in the world,” he said.

In fact, continued Teten, there is a new platform in China that is connected to 25 factories in the bamboo country. The products can come directly to consumers, without going through distributors, resellers, and so on.

“We may not master the technology, but we have national sovereignty. This is what we must protect,” said Teten.

“The President has also assigned the relevant ministers to prepare a national digital economic policy to protect domestic digital platforms, protect local industry, protect MSMEs, and protect consumers or the public,” he added.

However, Teten believes that this policy is often seen as anti-innovation and anti-technology. “Digital technology is a necessity. Therefore, we have a program to encourage MSMEs to go digital. Already 22 million MSMEs sell online,” he said.

However, he emphasized that the government must continue to protect MSMEs and domestic products from the invasion of products at lower prices.

“In many countries technology has been regulated, one of which is related to the transparency of algorithms and data on the platform,” he said.

However, even though there are digital economic regulations in Indonesia, Teten believes that foreign platforms will not just leave Indonesia because the market share in this country is very large.

“They are allowed to do business in Indonesia, but with a sustainable business model, not a destructive one,” concluded Teten.

[Gambas:Video CNBC]

(fab/fab)