
03 July 2025
Digitalization Trends of MSMEs in Indonesia 2025
How small businesses are transforming in the post-pandemic era
MSMEs and the Digital Revolution: Opportunity or Challenge?
As digital adoption grows across all industries, small businesses in Indonesia face both challenges and opportunities in keeping up with technological trends. This insight explores the key data and strategies that can help MSMEs thrive in the digital era.
Based on QASA’s internal research and supporting data from the Ministry of Cooperatives and SMEs.
63% of MSMEs in Indonesia are now actively using digital tools for their business.
Based on 2025 Data

Context and Key Challenges
Gen Z is the first generation to grow up with the internet and social media as a constant presence. They value authenticity, transparency, and real connections over traditional marketing tactics.
The digital transformation of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia has become a key focus in the post-pandemic recovery era. With more than 60% of MSMEs starting to adopt technology in their business processes, the shift towards digital platforms is no longer a luxury but a necessity.
Many MSMEs are now using digital tools for marketing, accounting, inventory management, and customer engagement. Government-led initiatives, such as digital onboarding and free training programs, have also played a crucial role in accelerating this transition.
However, there are still significant challenges. Digital literacy among business owners remains low in many regions. Infrastructure limitations and internet access are also uneven across the country.
This insight highlights the current state of digital adoption among MSMEs in Indonesia, presents key data points, and provides recommendations for stakeholders to support sustainable digital growth in this sector.
Muhamad Ramdhani Akbar
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