The Ministry of Cooperatives and Small and Medium Enterprises, Grab, and VIDA Collaborate to Promote Safer, Faster and Affordable Business Process for MSMEs
The collaboration also supports the registration of 200,000 new MSMEs into Grab ecosystem to boost MSMEs digital transformation in Indonesia
Jakarta, May 27th, 2021 – The Ministry of Cooperatives and Small and Medium Enterprises of the Republic of Indonesia (Kemenkop UKM) officially collaborated with Grab and PT Indonesia Digital Identity (VIDA) to develop a more secure, fast, and affordable business processes for Micro, Small and Medium Enterprises (MSMEs) through the application of digital transaction solutions as an enhancement of manual business processes to support the expansion of digitalization and economic opportunities for MSME players in Indonesia. Authentication of digital identity and digital transaction solutions will encourage more efficient business processes for MSME players.
Improving the digital transformation of MSMEs through technology application has been the government priority. Verification and authentication process will be a crucial part of digital activities to ensure data authentication and no false identity. This process is significant because it increases trust between market players in the digital era, of which the process can boost the acceleration of MSME players to be integrated with the digital ecosystem.
Arif Rahman Hakim, Secretary of Ministry of Cooperatives and SMEs; Tirza Reinata Munusamy, Director of Central Public Affairs of Grab Indonesia; and Sati Rasuanto, CEO of VIDA, signed a cooperation agreement (PKS) in Jakarta (May 25, 2021). Through the collaboration, Grab welcomes 200,000 MSMEs assisted by the Ministry of Cooperatives and SMEs to join Grab platforms as merchant partners of GrabFood, GrabMart, and GrabKios. For the registration process, VIDA provides digital identity authentication and certified digital signature services. The services aim to provide trust-based management, contracts, and transaction processes for more secure online transactions.
Digital identification enables businesses and consumers to prove their valid identity electronically, and gain access to online service and transaction. Digital identity authentication can be used for business-to-business and business-to-consumer transactions and offers businesses to expand their customer base by providing trusted consumer and business identity authentication.
The Ministry of Cooperatives and SMEs has planned a strategy for transforming MSMEs, which includes formalization of informal MSMEs. “I really appreciate Grab's commitment in providing a platform for MSMEs to grow and develop in Indonesia. The collaboration between the Ministry of Cooperatives and SMEs and Grab has been going well through various collaborative programs. With additional support from VIDA as a secure and trusted verification and authentication technology service partner, we are optimistic VIDA technology solution can help maintain data security in transactions carried out by the targeted MSMEs. It surely will increase the competitiveness of the MSME sector, which is dominated by micro-businesses, in developing their businesses to be more productive and recover from the COVID-19 pandemic," said Arif Rahman Hakim, Secretary of the Ministry of Cooperatives and SMEs.
In order to manifest the development of digital-based MSMEs and encourage Indonesia's economic recovery, the collaboration between Grab and Ministry of Cooperatives and SMEs includes:
Providing MSMEs with digital identity authentication service and certified digital signature to improve the security of electronic transactions, thus, results in more efficient business processes.
Encouraging the development and empowerment of MSMEs by providing assistance in the registration process for various services such as GrabFood, GrabMart, and GrabKios.
Providing promotional support for 200,000 MSMEs in various activities that will be carried out by Grab
“VIDA as one of the Certificate Authority (CA) companies is present to accelerate the digital world, helping personal data protection issues, as well as cybersecurity through reliable technology solutions for MSMEs. With the adoption of data verification and authentication technology solutions, as well as VIDA electronic signatures, the on-boarding/registration process to targeted MSMEs has become much faster and easier. This is part of our support for the digital transformation in the MSMEs sector, and aligned with VIDA's commitment to create an increasingly integrated digital identity ecosystem in Indonesia," said Sati Rasuanto, CEO of VIDA.
“Adaptation and transformation are something that cannot be avoided by MSMEs, especially during this pandemic situation. Grab is committed to ensuring that our technology can have a positive impact for the millions of Indonesians by providing digital expansion and supporting broad economic opportunities. Digital identity authentication and trust services can improve business efficiency for MSMEs, especially when many businesses transact online, service security and consumer trust are very important. We hope that this collaboration can become a stepping stone for MSME players to adapt and develop in the era of the digital economy through more secure and efficient business processes," said Tirza Reinata Munusamy, Director of Central Public Affairs, Grab Indonesia.
MSMEs play an important role in the national economy and contribute 60% of Indonesia's gross domestic product (GDP), and absorb 97% of the workforce. MSMEs are an important element in preventing loss of livelihoods and decreasing economic levels. The Ministry of Cooperatives and SMEs reports that 3.79% of MSMEs have used online platforms to sell their products. Through synergy from various stakeholders, the number of MSMEs present in the digital ecosystem continues to increase rapidly, reaching more than 19% of the entrepreneur population.
About VIDA - PT Indonesia Digital Identity
PT Indonesia Digital Identity (VIDA) is a licensed Certificate Authority (CA) under the Indonesian Ministry of ICT, authorized to issue digital certificates that can be applied for digital signatures and web authentication. Established in 2018, VIDA is a digital identity network leveraging multi-factor authentication, digital signatures, and verified identities. VIDA applies world-class data security standards, including Public Key Infrastructure, facial recognition, and endpoint security to provide comprehensive cyber security solutions.
VIDA is also listed as a Digital Financial Innovation (Inovasi Keuangan Digital/IKD) registered with the OJK. The products and solutions offered by VIDA can be adopted by various sectors and industries, including the financial services industry to make it easier to verify direct customers. VIDA also believes in instilling digital trust among its users and by virtue, thus, the company has been registered under the OJK and BI regulatory sandbox.
VIDA also applies world-class technology standards that are certified and recognized internationally. The company became the first WebTrust accredited Certificate Authority (CA) company in Indonesia, and also is ISO 27001 certified.
VIDA - PT Indonesia Digital Identity
Grab is Southeast Asia's leading super app, providing meaningful daily services to customers. Currently, Grab has been downloaded on millions of mobile devices, giving access to 9 million driver-partners, merchant partners and agents. Grab offers a variety of on-demand services in Southeast Asia, including mobility solutions, food delivery, packages and groceries, mobile payments, and financial services in 428 cities in eight countries. (www.grab.com).
Tim Public Relations Grab Indonesia