Lazada to strengthen West Java digital economy and empower local biz

Lazada Indonesia has launched a new initiative to strengthen the digital economy in West Java as part of its commitment to supporting those who "play a critical role on the frontline of Indonesia’s economic recovery". Titled the Gerakan Akselerasi Karya Rakyat Digital Indonesia for West Java initiative, also known as Gerakan AKAR Digital Indonesia, the initiative was launched in collaboration with the government and aims to empower local businesses, consumers, logistics workers and many others in the digital economy ecosystem.

This follows the eCommerce firm's support for the government's import-substitution program last year to help local businesses. Lazada has been collaborating with various ministries to implement Gerakan AKAR Digital Indonesia this year, and aims to continue expanding this initiative in several strategic cities in Indonesia. 

Lazada also plans to roll out several consumer education initiatives which will increase Indonesians’ eCommerce literacy. These include MSME trainings that aim to improve understanding of digital commerce and to encourage digital transformation for growth, the establishment of a community-based Lazada Club in West Java to increase MSME competitiveness, and an intensive onboarding and mentoring program for MSMEs who join Lazada. At the same time, Lazada plans to expand its digital network in Indonesia to improve digital economy infrastructure in the region, starting from strengthening the Lazada Logistics network in target regions.

Gerakan AKAR Digital Indonesia was held at Lazada’s warehouse in Bandung Regency, West Java, and was marked by a visit by the province’s governor, Ridwan Kamil. Showing his support for the initiative, the governor donned a Lazada logistics uniform and made a package delivery to a customer living in Batununggal via an electric motorbike. 

Kamil said that both the wider eCommerce industry and society need to collaborate to grow the digital economy in the country. "In the last two years, West Java's digital economy has increased by 60%. As a provincial government, we strongly support the Gerakan AKAR initiative as there are still 4 million MSMEs out of a total of 5.5 million that haven’t yet undergone digital transformation," he added. 

Ferry Kusnowo, executive director of Lazada Indonesia, said that the support from Kamil and the West Java provincial government will help it drive the momentum of Gerakan AKAR Digital Indonesia forward, setting the stage for further penetration in order to build an inclusive digital economy in the market.

"Gerakan AKAR Digital Indonesia for West Java is the continuation of our collaboration with the government to support all digital economy heroes in the ecosystem and to accelerate economic growth in Indonesia. Through the initiative, we will focus on increasing eCommerce literacy, increasing MSMEs’ competitiveness and developing digital economic infrastructure, especially in the logistics system. This is in line with our mission to accelerate progress in Indonesia through commerce and technology,” he added.

MARKETING-INTERACTIVE has reached out to Lazada Indonesia for comment. 

Separately, a study titled "e-Conomy SEA 2021, Roaring 20s: The SEA Digital Decade" showed that Indonesia continues to be one of the most vibrant digital financial services markets due to its relatively open regulatory framework and is showing rapid growth across fintech and digital platforms. Digital financial services are also becoming critical enablers, with 98% of digital merchants now accepting digital payments and 59% of digital merchants now adopting digital lending solutions. 

Many are also embracing digital tools to engage with their customers, with 69% expecting to increase usage of digital marketing tools in the next five years and 45% saying they will increase investment in website analytics. At the same time, 43% said they will invest in digital analytics in the next five years. Meanwhile, 28% of digital merchants in Indonesia believed that they would not have survived the pandemic if not for digital platforms. While digital merchants utilise an average of two digital platforms, the study found that profitability remains a top concern.

Photo courtesy: 123RF

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