Approximately 80 percent of SMEs in Bogor City have obtained a Business Identification Number (NIB). However, legal status is not always accompanied by the ability to leverage digital technology to increase sales.
The owner admits to being quite confident in using catalog and digital promotion features. Nevertheless, they still weigh various factors before allocating a budget for paid advertising.
This situation illustrates how technology is becoming part of daily business activities. However, not all micro, small, and medium enterprises (SMEs) possess the same ability to utilize technology.
Behind the growing number of business accounts on Instagram, TikTok, and marketplaces, there are still SME owners who struggle to convert digital activity into effective marketing strategies that generate sales.
Large Business Base, Low Digital Conversion
Data from the Bogor City Office of Cooperatives, SMEs, Trade, and Industry (Dinkukmdagin) records that the number of SMEs in 2025 reached 43,425 units. Of that total, approximately 34,753 units, or 80 percent, have obtained a Business Identification Number (NIB).
In terms of legality, this achievement shows that the majority of SMEs have an official business identity. However, possessing a permit does not automatically reflect the readiness of business owners to face digital competition.
In a marketing management study summarized for this article, the condition of Bogor's SMEs is described as a phenomenon of high base, low conversion. This means that while the number of business owners and legal compliance is relatively high, the ability to turn technological access into effective marketing activities remains limited.
Some SME owners have used social media, instant messaging applications, and marketplaces to introduce their products. Unfortunately, the use of this technology is often limited to uploading photos and product information without a measurable marketing strategy.
As a result, the presence of a business on digital platforms is not necessarily directly proportional to an increase in sales.
Not Just Access, But Digital Skills
One of the challenges of SME digitalization is no longer just the ownership of devices or access to online platforms, but the ability to use them productively.
Data from the Central Statistics Agency (BPS) cited in a 2021 OECD report shows that only about 18.7 percent of SME workers in Indonesia possess adequate digital literacy.
This condition highlights the importance of improving digital skills, especially for business owners who are not accustomed to using technology as part of their business strategy.
Creating engaging content, reading account performance data, understanding consumer behavior, and running paid advertisements require specific knowledge and skills.
A study of the Teras Ciapus community found that some members still use personal accounts to market their products. Product photo quality is also a hurdle, ranging from poor lighting and unorganized composition to low image sharpness.
This is despite the fact that several members of the community have attended digital literacy training multiple times.
These findings reveal a gap between the knowledge gained during training and the ability to apply it in daily business activities.
Quantitative research on 180 SME owners in the Bogor area further reinforces this picture.
Using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method, the study found that digital literacy has a strong influence on digital entrepreneurial behavior with a coefficient of 0.694.
Furthermore, digital entrepreneurship influences digital innovation with a coefficient of 0.726, while digital innovation contributes to business sustainability with a coefficient of 0.542.
The research model was able to explain 64.5 percent of the variation in SME sustainability.
These results indicate that digital literacy is not just the ability to use devices, but is also related to innovation and business continuity.
Short Training, Long-Term Mentoring Needs
The issue of SME digitalization is also related to the coaching patterns provided thus far.
Training programs from universities and local governments are often carried out in a relatively short time, usually one to two days.
Meanwhile, business owners need more time to truly understand and apply the material, especially in content creation, marketplace management, digital advertising, and promotional evaluation.
Intensive mentoring for at least one month is considered more helpful than training conducted only once.
The culinary business owner featured in this article also expressed a similar need. According to them, mentoring after training can help the team apply the material while resolving technical obstacles when managing digital marketing.
One of the difficulties faced is balancing time between operational business activities and the need to produce content regularly to keep business accounts active.
On the other hand, the Bogor City Government has organized a number of capacity-building activities for SMEs.
These programs include product photography training and business profile optimization in October 2025, digital marketing strategy workshops in November 2025, and capacity building for creative economy human resources in May 2026.
However, the number of participants in a single activity generally ranges from 30 to 100 people.
If one training session is attended by 100 participants, that number is equivalent to about 1 percent of the 9,785 SMEs under the guidance of the Bogor City Dinkukmdagin. Compared to the total of 43,425 SMEs, the coverage is only about 0.23 percent.
This comparison shows the limited reach of a single training activity relative to the number of business owners who need capacity building.
Digitalization Success Is Not Measured Solely by Posts
Business owners who are better prepared for digital marketing generally do not just focus on the frequency of posting content, but also begin to evaluate its impact on sales.
The culinary business featured in this article has been recording income, stock, and expenses regularly.
The management also compares orders originating from social media with direct transactions at the business location.
Through this record-keeping, the owner can assess whether digital marketing activities truly contribute to increased turnover.
The presence of social media is also considered to make it easier for customers to obtain information regarding menus, prices, and promotions before making a purchase.
Another example of business development based on digital marketing comes from Hody, a local bag brand from Pasirmulya, West Bogor.
After opening an official store on Shopee in 2023 and building a digital marketing team from scratch, Hody has grown to have about 60 employees.
Marketplaces are said to contribute about 70 percent of the company's turnover, with annual sales reaching billions of rupiah. Hody products have also reached markets in Malaysia, Brunei Darussalam, and Australia.
Hody founder Mira emphasizes that it is no longer enough for business owners to simply upload products to digital platforms.
They need to understand various marketing features, such as live shopping (live shopping), affiliate programs, and professional online store management.
This experience shows that digital marketing requires strategy, human resources, and the ability to adapt to changing consumer behavior.
Infrastructure Challenges and Business Owner Readiness
In addition to skills, the digital infrastructure gap remains a challenge for some SMEs in the Bogor area.
In several areas of Bogor Regency, such as Sukaraja and Cigombong, unstable internet connections can hinder video-based marketing activities, including live streaming and uploading high-quality content.
This condition shows that digital readiness is not always uniform, even if an area is relatively close to Jakarta.
Meanwhile, a 2025 IPB study found that a number of clothing retail SMEs in Bogor are not yet interested in adopting TikTok as a marketing tool.
The reasons vary, ranging from limited knowledge and lack of resources to the pressure of competition on digital platforms.
These findings indicate that the decision to adopt technology is not only influenced by the availability of platforms but also by the internal readiness of the business owners.
In other developments, the Indonesian Chamber of Commerce and Industry (Kadin) plans to make the SME Digital Village a pilot project in Bogor City.
Initiatives like this can be an opportunity to strengthen mentoring and build a more targeted digital marketing ecosystem.
From Momentary Training to Sustainable Mentoring
These various findings indicate the need for a change in approach to SME digitalization programs.
One-time training can be a first step to introduce technology. However, improving the capabilities of business owners requires a continuous learning process tailored to the needs of each business.
Mentoring can be done in stages, starting from product content creation, business account management, marketplace utilization, promotional strategy formulation, to marketing result measurement.
Evaluation also needs to be directed at the real impact on the business, not just the number of participants attending training or the number of digital accounts successfully created.
Possessing an NIB, social media accounts, and a marketplace store are important foundations. However, the success of digital transformation should be visible from the ability of business owners to improve marketing quality, expand markets, strengthen innovation, and maintain business sustainability.
For SMEs in Bogor, the journey from a stall to smartphone-based marketing still requires further steps.
Because digital transformation is not just about moving a storefront to a phone screen, but ensuring that technology is truly capable of driving business growth.
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