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Economic growth a shoe-in for Indonesia’s SMEs on the Internet
Friday, August 21, 2015
A size 46 foot might not pose a problem in the U.S. or Europe but, in Indonesia, Yukka Harlanda, struggled to find a shoe that he liked—much less one that fit. In 2010, while studying to become an engineer, Yukka decided to make his own shoes. And that’s how
got started. Brodo is just one example of an SME that’s using the Internet to grow, and in turn, help Indonesia meet its goal of becoming a middle income country by 2025.
Brodo began by leaving shoes on consignment in shops around the city of Bandung. But soon they discovered that they could run a more efficient business and reach more customers through the Internet. Three years after founding the company, Brodo became an online business with a website, an e-payment system, and it introduced data analytics and cloud tools for easier control over inventory that help to reduce lost sales. Two years on, Brodo now employs 118 people and generates around USD120,000 annually through a combination of online and offline sales—with 80% of sales originating from the webshop.
Brodo co-founders Yukka Harlanda (L) and Putera Dwi Karunia (R)
Brodo illustrates how going online opens tremendous opportunity for SMEs and for the wider economy. A
by Deloitte Access Economics shows how doubling broadband penetration rates and lifting digital engagement by SMEs could increase Indonesia’s annual economic growth by 2% – the additional growth it needs to achieve the 7% target required to be a middle-income country by 2025.
The report, which was supported by Google, also demonstrates other benefits of going online for Indonesian SMEs:
Up to 80% higher growth in revenue
One and half times more likely to increase employment
17 times more likely to be innovative, and,
SMEs with higher digital engagement are more competitive internationally.
For any Indonesian business needing a leg (or shoe) up in the business world, increasing digital awareness and access has never been more important.
Posted by Shinto Nugroho, Head of Policy and Government Relations, Google Indonesia
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