The ASEAN DEFA: Empowering Indonesia’s MSMEs
Indonesia's micro, small, and medium-sized enterprises (MSMEs) stand to gain significantly from the ASEAN Digital Economy Framework Agreement (DEFA), which aims to standardize digital trade and financial services across the region. As tech subsidies decline due to the 'tech winter,' DEFA offers a unified framework to support digital trade, enhance cybersecurity, and streamline digital payments, thereby reducing operational costs for MSMEs.
Digital platforms like OVO can leverage DEFA to improve interoperability and expand support for MSMEs through innovative payment systems and financial inclusion initiatives. Public-private partnerships, exemplified by Indonesia's Prakerja program, have already demonstrated success in enhancing financial inclusion and boosting purchasing power. DEFA's implementation could further empower MSMEs by facilitating cross-border data flows and creating a more resilient and competitive digital economy in Indonesia.