The Paradox of Digitalization and MSME Challenges

In her oration, Prof. Mustika highlighted a paradox in Indonesia: why a country with abundant natural wealth has not yet been fully able to turn this abundance into a competitive advantage and equitable prosperity. She emphasized that the root of the problem is not merely the limited capital of Micro, Small, and Medium Enterprises (MSMEs), but rather structural issues, a lack of access, and capability gaps.

“Technology access must meet capability. Currently, digitalization does lower the barrier to entry for MSMEs, but it does not automatically improve their capabilities. Technology only creates value when the capability exists,” Prof. Mustika explained.

She elaborated that current digitalization often merely adds "new controllers" through algorithms and e-commerce platforms. This burdens micro-entrepreneurs with additional costs, such as search engine optimization and advertising. Consequently, the bargaining position of MSMEs—which dominate 99% of Indonesia's economic structure—remains weak amid an open market.

Societal Marketing for Grassroots Producers

To overcome these challenges, Prof. Mustika proposed a broadened Societal Marketing approach. While conventional marketing science focuses more on satisfying consumers, this approach seeks to ensure that prosperity is also experienced by grassroots producers, such as farmers, fishermen, and artisans.

The main key to this prosperity transformation is the concept of Knowledge Orchestration.

"We do not lack knowledge. Universities are abundant with research and innovation. However, this knowledge is scattered and often not channeled to address real problems in society. This is where we need knowledge orchestration," she asserted.

Ecobis.id as a Living Laboratory

As a concrete manifestation of this concept, Prof. Mustika and the team at the SBM ITB Neurobusiness Laboratory developed an inclusive digital platform called Ecobis.id.

This platform serves as a living laboratory or ecosystem that connects the root problems faced by MSMEs with solutions from experts, universities, the government, and the industry. Through a co-creation process and joint innovation, this system facilitates the transformation of knowledge into real capabilities capable of increasing the added value of local products.

Prof. Mustika, who has dedicated decades to mentoring Cooperatives and MSMEs in West Java, concluded her oration with a profound reflection on the role of academics.

"No single person, no single scientific discipline, and no single institution has all the answers. Because knowledge is scattered, it is our duty to connect it, mobilize it, and transform it into capabilities and prosperity for the nation," she concluded.

For information, Prof. Mustika Sufiati Purwanegara earned her bachelor's degree from Industrial Engineering ITB, cohort 1979, and her Master's and Doctoral degrees from Ghent University, Belgium. She was officially inaugurated as a Professor in Consumer Behavior, Neuromarketing, and Inclusive Business effective July 1, 2025.