POTENTIAL AND CHALLENGES FOR PRIVATE SECTOR TO LEAD WARUNG DIGITALIZATION IN INDONESIA

Irlandi Paradizsa, Ety Rahayu

Abstract


Abstract. The purpose of this study is to understand the potential and challenges for the private sector to lead the process of warung digitalization to improve their business. MSMEs such as warung in Indonesia have been a tool for income generation for many people. Though, the number of warung that has leveled up is still minimum—most of their business are stagnant. This has resulted to the no change of their welfare situation. The approach used in this study is qualitative with the method of literature review. This study finds that there are potential for the private sector to be the trailblazer for the digitalization process because of their characteristics and traits, the other actors’ situation, and the profit to be gained. Though, there are some challenges to be addressed such as the lack of supporting infrastructure, minimal regulatory framework, and also the need for training the warung owner.

 

Keywords: Digitalization; warung; private sector; potential; challenges; empowerment

 

Abstrak. Tujuan dari studi ini adalah untuk memahami potensi dan tantangan bagi sektor swasta untuk memelopori proses dari digitalisasi warung untuk meningkatkan bisnis mereka. UMKM seperti warung di Indonesia telah menjadi alat untuk menghasilkan pendapatan bagi banyak orang. Pun demikian, jumlah warung yang bisa berkembang jumlahnya masih minimal—kebanyakan bisnis mereka stagnan. Hal ini menyebabkan tidak terjadi perubahan terhadap tingkat kesejahteraan mereka. Pendekatan yang dilakukan dalam studi ini adalah secara kualitatif dengan metode kajian literatur. Studi ini menemukan bahwa ada beberapa potensi bagi sektor swasta untuk menjadi pemrakarsa untuk proses digitalisasi yang disebabkan oleh karakteristik dan sifatnya, situasi dari pihak-pihak lainnya, dan keuntungan yang dapat diraih oleh sektor swasta. Walaupun begitu, ada beberapa tantangan yang perlu diselesaikan seperti kurangnya infrastruktur pendukung, kerangka kerja peraturan yang masih minimal, serta kebutuhan untuk melatih para pemilik warung terlebih dahulu.

 

Kata kunci: Digitalisasi; warung; sektor swasta; potensi; tantangan; pemberdayaan.

Keywords


Digitalization; warung; private sector; potential; challenges; empowerment

References


Adiwibowo, S., Setiadi, M. I., Daniel, Mitarum, E., Surbakti, E. E., & Shihab, M. R. (2019). Improving Indonesian Small Economies by Digitizing Traditional Shops: A Case Study of Mitra Bukalapak. Proceedings of 2019 International Conference on Information Management and Technology, ICIMTech 2019, 1(August), 608–612. https://doi.org/10.1109/ICIMTech.2019.8843739

Ali, Z., Gongbing, B., & Mehreen, A. (2018). Does supply chain finance improve SMEs performance? The moderating role of trade digitization. Business Process Management Journal, 26(1), 150–167. https://doi.org/10.1108/BPMJ-05-2018-0133

Allen, E. R. (2016). Analysis of Trends and Challenges in the Indonesian Labor Market. ADB Papers on Indonesia, 16. https://doi.org/10.1016/j.rcp.2015.08.004

Aprilianti, I., & Dina, S. A. (2021). Co-regulating the Indonesian Digital Economy. Policy Paper no. 30, 1–40.

Ascarya, & Rahmawati, S. (2018). Analysis of the determinants of micro enterprises graduation. Journal of Islamic Economics, Banking and Finance, 14(1), 12–60. https://doi.org/10.12816/0051166

Bank, A. D. (2020). Innovate Indonesia: Unlocking growth through technological transformation. Asian Development Bank.

Batley, R., Stone, C., & Khan, I. (2015). Is the private sector more efficient? A cautionary tale (Issue January). UNDP Global Centre for Public Service Excellence.

Batunanggar, S. (2019). Fintech Development and Asian Development Bank Institute. ADBI Working Paper Series FINTECH, 1014.

Baumeister, R. F., & Leary, M. R. (1997). Writing narrative literature reviews. Review of General Psychology, 1(3), 311–320. https://doi.org/10.1037/1089-2680.1.3.311

Bollweg, L., Lackes, R., Siepermann, M., & Weber, P. (2020). Drivers and barriers of the digitalization of local owner operated retail outlets. Journal of Small Business and Entrepreneurship, 32(2), 173–201. https://doi.org/10.1080/08276331.2019.1616256

Bonina, C. M., & Cordella, A. (2010). Public sector innovation and ICT: beyond the private sector rationale. Conference Proceedings from the 3rd Latin American and European Meeting on Organization Studies, Moore 1995. https://www.researchgate.net/publication/238783897

Bouwman, H., Nikou, S., & de Reuver, M. (2019). Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs? Telecommunications Policy, 43(9), 101828. https://doi.org/10.1016/j.telpol.2019.101828

Boyne, G., Jenkins, G., & Poole, M. (1999). Human resource management in the public and private sectors: An empirical comparison. Public Administration, 77(2), 407–420. https://doi.org/10.1111/1467-9299.00160

Bukalapak. (2019). Tentang Mitra Bukalapak. Bukalapak. Retrieved from https://mitra.bukalapak.com/

Burhan, F. A. (2019). DIGITAL Warung Pintar , Tokopedia , dan OVO Kolaborasi untuk Rambah Warung. Katadata.Co.Id. Retrieved from https://katadata.co.id/desysetyowati/digital/5e9a4c53ae3c5/warung-pintar-tokopedia-dan-ovo-kolaborasi-untuk-rambah-warung

Cankar, S. S. (2013). The importance of cross-sector collaboration. December, 1597–1606.

Capri, A. (2017). Micro and small businesses in Indonesia’s digital economy. 56.

Choi, D. S., Sung, C. S., & Park, J. Y. (2020). How does technology startups increase innovative performance? The study of technology startups on innovation focusing on employment change in Korea. Sustainability (Switzerland), 12(2). https://doi.org/10.3390/su12020551

Corporation, I. F. (2011). Development through the private sector. International Finance Corporation. https://search.proquest.com/openview/e30e2163ea04923507759f072e16d205/1.pdf?pq-origsite=gscholar&cbl=1819673

Cribb, J., Davenport, A., & Zaranko, B. (2017). Public sector pay and employment : where are we now ? Institute for Fiscal Studies, IFS Briefing Note BN263.

Dariyanto, E. (2017). Cerita tentang azimat CPNS dan angka pengangguran. Detiknews. Retrieved from https://news.detik.com/berita/d-3691976/cerita-tentang-azimat-cpns-dan-angka-pengangguran

Das, K., Gryseels, M., Sudhir, P., & Tan, K. T. (2016). Unlocking Indonesia’s digital opportunity. McKinsey & company, October, 1–28. https://www.mckinsey.com/~/media/McKinsey/Locations/Asia/Indonesia/Our Insights/Unlocking Indonesias digital opportunity/Unlocking_Indonesias_digital_opportunity.ashx

Dickens, J. (2016). Social work and social policy: An introduction. In Social Work and Social Policy: An Introduction. https://doi.org/10.4324/9781315780405

Eller, R., Alford, P., Kallmünzer, A., & Peters, M. (2020). Antecedents, consequences, and challenges of small and medium-sized enterprise digitalization. Journal of Business Research, 112(March), 119–127. https://doi.org/10.1016/j.jbusres.2020.03.004

Fauzi, A. A., & Sheng, M. L. (2020). The digitalization of micro, small, and medium-sized enterprises (MSMEs): An institutional theory perspective. Journal of Small Business Management, 00(00), 1–26. https://doi.org/10.1080/00472778.2020.1745536

Gatautis, R. (2008). The impact of ICT on public and private sectors in Lithuania. Engineering Economics, 4(59), 18–28. https://doi.org/10.5755/j01.ee.59.4.11558

Handarkho, Y. D., Suryanto, T. R., Dewi, F. K. S., & Julianto, E. (2017). Penerapan strategi E-business untuk meningkatkan keunggulan kompetitif dari usaha mikro kecil menengah di Indonesia (Studi kasus Trooper Electronic Yogyakarta). Jurnal Buana Informatika, 8(4), 201–212. https://doi.org/10.24002/jbi.v8i4.1444

Hervé, A., Schmitt, C., & Baldegger, R. (2020). Digitalization, entrepreneurial orientation and internationalization of micro-, small- And medium-sized enterprises. Technology Innovation Management Review, 10(4), 5–17. https://doi.org/10.22215/TIMREVIEW/1343

Huebner, A., & Milne, S. (2012). Donor funding and climate change: Tourism adaptation in Kiribati and Tuvalu. In Bridging Tourism Theory and Practice. Emerald Group Publishing Ltd. 4. 193-208. https://doi.org/10.1108/S2042-1443(2012)0000004013

Humas Kementerian Koperasi dan UKM. (2020). Kemennkop dan UKM Apresiasi Bukalapak Berdayakan Warung Naik Kelas Melalui Virtual Produk. Situs Resmi Kementerian Koperasi Dan UKM Republik Indonesia. Retrieved from https://www.kemenkopukm.go.id/read/kemenkop-dan-ukm-apresiasi-bukalapak-berdayakan-warung-naik-kelas-melalui-virtual-produk

Ife, J. (2012). Human rights and social work: Towards rights-based practice. In Human Rights and Social Work (Third Edit). Cambridge University Press. https://doi.org/10.1017/CBO9780511808326

Jayani, D. H. (2020). Pemerintah Beri Stimulus, Berapa Jumlah UMKM di Indonesia? | Jumlah Unit Usaha Mikro, Kecil, dan Menengah. Katadata.Co.Id. Retrieved from https://databoks.katadata.co.id/datapublish/2020/04/08/pemerintah-beri-stimulus-berapa-jumlah-umkm-di-indonesia

Isensee, C., Teuteberg, F., Griese, K. M., & Topi, C. (2020). The relationship between organizational culture, sustainability, and digitalization in SMEs: A systematic review. Journal of Cleaner Production, 275, 122944. https://doi.org/10.1016/j.jclepro.2020.122944

Kementerian Ketenagakerjaan RI. (2021). Ketenagakerjaan dalam Data 2021. In 1. https://satudata.kemnaker.go.id/files/2019 BUKU KETENAGAKERJAAN DALAM DATA_1605501203.pdf

Kemp, S. (2021). Digital 2021: Indonesia. Global Digital Insights. Retrieved from https://datareportal.com/reports/digital-2021-indonesia

Kodong, F. R., Juwairiah, & Simanjuntak, O. S. (2015). Manajemen Rantai Pasokan Pada E-Commerce Industri Makanan Ringan Kwt an-Naba Yogyakarta. Seminar Nasional Informatika Yogyakarta, 2015(November), 139–146.

Kumarasinghe, W. S. L., & Haleem, A. (2020). The impact of digitalization on business models with special reference to management accounting in small and medium enterprises in Colombo district. International Journal of Scientific and Technology Research, 9(3), 6654–6665.

Maksum, I. R., Sri Rahayu, A. Y., & Kusumawardhani, D. (2020). A social enterprise approach to empowering micro, small and medium enterprises (SMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 6(3). https://doi.org/10.3390/JOITMC6030050

Mergel, I., Gong, Y., & Bertot, J. (2018). Agile government: Systematic literature review and future research. Government Information Quarterly, 35(2), 291–298. https://doi.org/10.1016/j.giq.2018.04.003

Nugroho, Y. (2007). Does the internet transform civil society? The case of civil society organisations in Indonesia [Manchester Business School]. In Innovation, Management and Policy Division Manchester Business School. http://search.proquest.com/docview/898725986?accountid=13771

Onwuegbuzie, A. J., Leech, N. L., & Collins, K. M. T. (2012). Qualitative analysis techniques for the review of the literature. Qualitative Report, 17(28), 1–28. https://doi.org/10.46743/2160-3715/2012.1754

Septina, N., Danil, L., & Satyarini, R. (2019). Marketing communication adaptation of MSME in the digital era: Responding to changes in consumer behavior marketing communication adaptation of MSME in the digital era: Responding to changes in consumer behavior. Review of Management and Entrepreneurship, 03, 2. www.statista.com

Soegoto, A. S., Soegoto, D. S., & Pasha, M. S. (2020). Empowerment digital strategies for medium small enterprises. Journal of Physics: Conference Series, 1477(7). https://doi.org/10.1088/1742-6596/1477/7/072003

Suliswanto, M. S. W., & Rofik, M. (2019). Digitalization of micro, small & medium enterprises (MSMEs) In East Java, Indonesia. Muhammadiyah International Journal of Economics and Business, 2(1), 34–43. https://doi.org/10.23917/mijeb.v2i1.9380

Ward, M. A. (2006). Information systems technologies: A public-private sector comparison. Journal of Computer Information Systems, 46(3), 50–56. https://doi.org/10.1080/08874417.2006.11645898

Weda, A. (2019). Cek Fakta: Apakah Umkm Solusi Untuk Penciptaan Lapangan Pekerjaan? The Conversation. Retrieved from https://theconversation.com/cek-fakta-apakah-umkm-solusi-untuk-penciptaan-lapangan-pekerjaan-114192

West, D. M., & Lu, J. (2009). Comparing Technology Innovation in the Private and Public Sectors (Issue June). Governance Studies at the Brookings.

Wiliandri, R.-. (2020). A Conceptual Approach to Identify Factors Affecting the Digital Transformation of Micro, Small and Medium-sized Enterprises (MSMEs) during Covid-19 Pandemic in Indonesia. Ekonomi Bisnis, 25(2), 66. https://doi.org/10.17977/um042v25i2p66-85

Wiradji, S. (2021). Grassroot strategy to realize financial inclusion in Indonesia. The Jakarta Post. https://www.thejakartapost.com/life/2021/04/15/grassroot-strategy-to-realize-financial-inclusion-in-indonesia.html


Full Text: PDF

DOI: 10.15408/empati.v11i1.23673

Refbacks

  • There are currently no refbacks.




Copyright (c) 2022 Irlandi Paradizsa

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.