By: Fready Wijaya (041711133044)
Indonesia is an agricultural country that has abundant agricultural, natural resources. The agricultural sector has an essential role in supporting the national economy, especially as a source of food, a source of livelihood and a source of foreign exchange in the non-oil and gas sector. In the second quarter of 2018, the agricultural sector was the second-largest contributor to GDP by Rp502.15 trillion or 13.63% (Statistics Indonesia, 2018). Based on the results of the 2018 Inter-Census Agriculture Survey, the number of Agricultural Business Households (RTUP) reached 63,280,305 business units while the number of farmers reached 33,487,807 people. The data above shows that the agricultural business sector is still the ‘trendsetter’ of the business of most Indonesians.
The development of the global era is very rapid, according to Alvin Toffler in his book entitled Future Shock (1970) the wave of economic division divided into four stages. The first wave is the agricultural economy; second is the wave of the industrial economy; third is the information economy, and the fourth wave is the creative economy. At present, the world is entering a stream of creative economy that is supported by technological advancements, so it is necessary to adjust the economic support industry. Based on Ernst & Young’s analysis data, the current growth value of Indonesia’s online business sales has increased by 40% annually. Even according to data from the Central Statistics Agency in 2015, there were 93.4 million internet users and 71 million smartphone users in Indonesia. Also predicted in 2020, the volume of online business is predicted to reach USD 130 billion with a growth rate of 50% each year. The explanation above shows that the digital potential is excellent in sustaining the economy and the community is starting to switch to digital-based business.
The Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM) in 2017 stated that currently there are 59.2 million MSMEs in Indonesia and has a proportion of 99.99% of the total business operators in Indonesia. Based on data from the Ministry of Industry in 2018, the contribution of the MSME business sector contributed 60.34% to GDP and was able to absorb labour in this sector up to 97.22%.
Indonesia’s Economic Potential is very dependent on how economic behaviour adjusts to current global developments. As an agrarian country with high online business potential and high MSME sector potential, it should be able to become capital for the national economy. However, the problem of internet affordability by business actors is still the biggest obstacle in the implementation of collaborative SME-based agricultural business sectors in the digital age. Out of a total of 59.2 million MSMEs, only 3.79 million MSMEs, or the equivalent of 8%, are integrated with the internet. Likewise, in the agricultural business sector, only 4.5 million farmers, equivalent to 13.44% of the total 33.4 million farmers. Therefore it is necessary to empower the capability and performance of an integrated internet-based agricultural SMEs sector.
The President of the Republic of Indonesia on June 11, 2005, launched a program called Revitalization of Agriculture, Fisheries and Forestry (RPPK). This program aims to empower capabilities and improve agricultural performance in national development. On this basis, the Directorate General of Agricultural Product Processing and Marketing (Dirjen PHPP) of the Ministry of Agriculture in the General Guidelines for the Implementation of PPHP Program and Budget Performance in 2006/2007 formulated several policies related explicitly to improving market information services and developing an efficient marketing system infrastructure.
In 2017, the Ministry of Communication and Information Technology and the Ministry of Communication and Information Technology (Kemkominfo) initiated a program called 8 million UMKM Go Online. Expected that later on in this program, there would be an integration of the MSME sector with the Agriculture business sector as has been done by several e-commerce actors. BukaLapak, for example, has a ground coffee program in the area in empowering the farming community and several other business actors. This program must be accommodated by the Ministry of Education and Culture (Kemendikbud) and the Ministry of Research, Technology and Higher Education (Kemenristekdikti) in preparing human resources, unusually technologically literate farmers. The Ministry of Agriculture (Ministry of Agriculture) can also contribute to learning sustainable and efficient agricultural production systems. With secure integration between stakeholders will be able to realise a shared vision of making Indonesia the Digital Energy of Asia in 2020 and the world food barn in supporting SDG’s 2030.
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