Table 2.

Component of digital MSMEs ecosystem by sector

Ecosystem component	State of digitalization by sector
	Food	Fashion
Digital MSMEs market	• The majority of MSMEs served local market, and some of them also distributed to other provinces, and very few also served international market particularly dried food or processed food • Having good partnership with logistics providers, able to meet quality and packaging standard are also factors behind this digital transaction • The international market opportunity is coming from informal network with Indonesian diasphore and also promotion support from government	• Local and national customers were dominated market for MSMEs fashion • International customers are occasionally during attending international exhibitions • Connecting to digital market, or applying digital production have opened opportunity for MSMEs to expand their market in fashion sector • Market expansion is suppoted by production automation for MSMEs in fashion sector
Human capital	• The majority of MSMEs have moderate level of digital skill, while some of them possess either average or high level of digital skill. A small portion of below-average digital skill MSMEs is identified in this sector • The development of production capability relies on SME’s own initiatives • Endorsement on sustainability and health issue rise in this sector	• Most MSMEs have moderate level of digital skill, while some of them possess either average or high level of digital skill • The development of production capability relies not only on MSMEs’ initiatives but also on the co-creation process between MSMEs and their customers • The sustainability issue is less of a concern for m fashion sector
Innovation	Most of firms show a low level of innovativeness by creating simply product variances; only a few of them able to improve their product features and quality, also production processes	Some of them show moderate level of innovativeness by continuous developing new design to be able to compete in competitive fashion market
Socio-technical adaptation	• The majority of Food MSMEs are interested in digital market • Some of them have participated in digital training provided by government, or digital providers, or academia • Some MSMEs used the digital in market • Reluctance to apply the digital application for transaction and • Refuse to use digital in business. Some reasons are MSMEs digital skills, high investment and staff requirement, and requires new business model	• Most MSMEs fashion sector were interested and have utilized digital application in transaction • A few of them applied digital business and production automation • Some MSMEs still reluctance to apply digital, partly due to skill and new business model requirement • Some believe digital market is risky to their product due to copyright issue, fraud, and fierce competition • Some of them trusted on physical contact in business transaction particularly for prime products and meeting unique customers demand
Digital financing	• The majority of the F&B MSMEs are combining cash payment and banking services such as transfer, debit and credit payment • A few of them are using digital payment or financing • Some of the traditional micro-firms only uses cash payment	• The majority of the fashion MSMEs are combining cash payment and banking services such as transfer, debit and credit payment. Meanwhile, • A few of them are using digital payment or financing • Some traditional micro-firms only uses cash payment
Government role	• The most frequent development programs received are training and exhibition • Some MSMEs have experienced other facilitation from the government, such as funding, production facilities, compliance assistance, competition, other promotion programs, and overseas benchmark and market search • Regulatory compliance is more complex • Protection of product copyright is needed	• The most frequent development programs received are training and exhibition. However, some MSMEs have experienced other facilitation from the government, such as funding and other promotion programs • No regulatory compliance issue arises • Protection of product copyright is needed