Understanding Digital Talent Potential in Indonesia^s Digital-Savvy SMEs: A Case Study from West Sumatra, West Java and DI Yogyakarta
Nawawi Nawawi, Trina Trina Fizzanty,Adityo Wicaksono

Research Center for Population, Indonesian Insitutute of
Sciences (P2K LIPI)

Abstract

ABSTRACT

The development of digital technology in the past decades and the current pandemic of Covid-19 have given good lessons to learn how business should adapt to these changes. Those who can adapt through digital technology in developing their business will survive and gain profits, while on the contrary will be left behind. In the Indonesian context, where most business actors are small medium-size enterprises (SMEs), the challenges will be more complex. This paper provides new insights into the socio-economic dynamics of Indonesian^s SMEs, with consideration given to the need of developing digital talent of SMEs toward the use of digital technology. The paper also questions digital readiness of SMEs in Indonesia by examining their level of digital talent in developing their businesses. Empirical data is gathered from a qualitative study and a survey involving 718 SMEs in West Sumatera, West Java and DI Yogjakarta provinces. The core analysis of this paper finds that implementation of the SMEs^ digital transformation program in Indonesia must consider different socio-economic characteristics and digital capability of SMEs. A more consolidated, professional and sustainable digital business accompaniment are needed, especially programs initiated by local government. In addition, a locally specific incentive programs for SMEs is significantly proven to increase the willingness of SMEs to transform their businesses into digital or mix with both types, manual and digital. In developing these arguments, this paper offers a way to understand better the varied possibilities for and limitation of digital talent^s development among SMEs in Indonesia. It also explicates the prospect of digital transformation in Indonesia^s economy.

Keywords: Digital Talent, Digital Transformation, SMEs

Topic: Strategic Management, Entrepreneurship and Contemporary Issues