Optimization of Digitalization-Based MSMEs by the Dinas Koperasi dan UKM of South Tangerang City

Abstract

This study explores the role of the Dinas Koperasi dan UKM of South Tangerang City in optimizing the digital transformation of Micro, Small, and Medium Enterprises (MSMEs). As MSMEs are key drivers of Indonesia's economy, their digital empowerment is essential to increase competitiveness and market reach. Using a descriptive qualitative method, this study involved six key informants-three officials from the Office of Cooperatives and SMEs and three MSME actors. Data was collected through semi-structured interviews and non-participant observation, and methodological triangulation was applied by comparing findings from both sources to enhance data credibility. Findings show that the office implements several programs such as Incubator, Entrepreneur Hub, Tangsel Digifest, and Sapa UMKM to promote digital adoption. These initiatives provide technical training, mentoring, and digital branding assistance to help MSMEs adapt to technological changes. Success stories include improvements in product packaging, use of social media for marketing, and increased sales. However, challenges remain, such as low digital literacy, lack of confidence among business actors without legal permits, and limited internet access in some areas. Some MSMEs are reluctant to join programs due to administrative concerns or limited human resources to manage digital tools. The study concludes that digital transformation must be collaborative, contextual, and supported by ongoing engagement and personalized outreach. The government's role is crucial in building an inclusive and responsive digital ecosystem for sustainable MSME growth.

DOI: http://dx.doi.org/10.23960/E3J/v8.i1.112-118