Optimizing Indonesian MSME Financial Management Through Blockchain Technology Integration: Feasibility Study, Transparency, and Implementation Challenges
DOI:
https://doi.org/10.31004/joecy.v6i1.7383Keywords:
Financial Management, MSME, Technology Integration, Block ChainAbstract
Financial management of MSMEs in Indonesia still faces various fundamental weakness, especially in the aspects of recording, reporting, separation of personal and business finances, and transparency which have a negative impact on credibility and access to capital. The study purpose was blockchain technology has emerged as an alternative solution that is conceptuallty capable of increasing transparency, accountability, data security, and efficiency of financial processes through permanent transaction recording and the use of smart contracts. Materials and methods. This research will employ a qualitative approach supported by descriptive quantitative data. The research design will be both exploratory and descriptive. The qualitative approach will be used to deeply understand the perceptions, experiences, and challenges faced by MSMEs, as well as expert perspectives regarding blockchain integration in financial management. Meanwhile, descriptive quantitative data will be used to provide an overview or level of readiness regarding specific aspects of the feasibility study.Results. Based on technical, economic, operational, and legal and regulatory feasibility analyses, blockchain integration is considered potential but cannot be implemented directly without adapting to infrastructure limitations, costs, human resource competencies, and evolving regulatory certainty. Challenges such as limited resources, low digital literacy, technological complexity, and data protection issues require a structured mitigation strategy through affordable service models, increased capacity of MSMEs, government policy support, and system design that maintains a balance between transparency and privacy.Conclusions. This research confirms that blockchain integration in MSME financial management is not simply a technology adoption agenda, but part of a strategic effort to build a more inclusive, credible, and sustainable digital financial ecosystem. Its successful implementation depends heavily on collaboration between MSMEs, the government, financial institutions, and technology developers in designing solutions that meet the characteristics and real needs of MSMEs in Indonesia.
References
Kementerian Koperasi dan UKM Republik Indonesia, “Perkembangan Data Usaha Mikro, Kecil, Menengah (UMKM) dan Usaha Besar (UB) Tahun 2018-2019.,” Jakarta: Kementerian Koperasi dan UKM RI.
Nguyen, V. T., & Ramachandran, V. (2020). Financial management practices and firm performance of micro, small, and medium enterprises in emerging markets. Journal of Small Business and Enterprise Development, 27(4), 1017–1038. https://doi.org/10.1108/JSBED-05-2020-0150.
Casino, C., Dasaklis, T. K., & Patsakis, C. (2019). A systematic literature review of blockchain-based applications: Current status, classification, and open issues. Telematics and Informatics, 36, 55–81. https://doi.org/10.1016/j.tele.2018.11.003.
Nurlaela, S., Mursito, B., Kustiyah, E., Istiqomah, I., & Hartono, S. (2019). Asset management policy and financial performance of small and medium enterprises in Indonesia. Academy of Accounting and Financial Studies Journal, 23(5), 1–9.
Creswell, J. W., & Creswell, J. D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches (5th ed.). SAGE Publications.
Patton, M. Q. (2015). Qualitative research & evaluation methods (4th ed.). SAGE Publications.
Ramadani, V., Gërguri-Rashiti, S., Dana, L. P., & Ratten, V. (2021). Financial management practices in micro, small, and medium enterprises (MSMEs): A systematic review and future research agenda. Journal of Small Business Management, 59(4), 1317–1352. https://doi.org/10.1080/00472778.2021.19044361.
Endri, E. (2021). Digitalisasi akuntansi pada usaha mikro, kecil, dan menengah (UMKM) di Indonesia: Tantangan dan peluang. Jurnal Akuntansi dan Keuangan Indonesia, 18(2), 145–162. https://doi.org/10.2307/jaki.2021.18.2.145.
Rahayu, I. W., Widnyana, N. P., & Purnama, I. W. (2020). Pengaruh literasi keuangan dan penggunaan teknologi informasi terhadap kualitas laporan keuangan UMKM. Jurnal Akuntansi dan Keuangan Indonesia, 17(2), 209–226. https://doi.org/10.2307/jaki.2020.17.2.209.
Lyubimov, A. V. (2017). Digital financial inclusion: Policy makers’ toolkit. Journal of Payments Strategy & Systems, 11(12), 122–137. https://doi.org/10.2139/ssrn.2994452.
Kshetri, N. (2018). Blockchain’s roles in meeting key supply chain management objectives. Innovation: Journal of Social Science Research and Information Management, 39, 80–89. https://doi.org/10.1016/j.innorg.2018.03.002.
Dwivedi, S. F., Janssen, M., Slade, E. L., & Wamba, S. F. (2022). Blockchain-driven smart contracts for operational efficiency in micro, small, and medium enterprises. Journal of Business Research, 147, 663–674. https://doi.org/10.1016/j.jbusres.2022.03.052.
Schmitz, G. J., & Leoni, G. (2019). Accounting and auditing at the time of blockchain technology: A research agenda. Australian Accounting Review, 29(2), 331–342. https://doi.org/10.1111/auar.12183.
Laudon, K. C., & Laudon, J. P. (2020). Management information systems: Managing the digital firm (16th ed.). Pearson.
Dewi, K. F., & Sari, K. (2023). Challenges and opportunities of blockchain technology adoption for MSMEs in Indonesia: A systematic literature review. Journal of Innovation and Entrepreneurship, 12(1), 1–20. https://doi.org/10.1186/s13731-023-00208-x.
Wargiono, D., Hutabarat, J., & Laksmana, D. I. (2021). Analysis of musculoskeletal complaints disordered with REBA method and RULA method (Case study of vocational high school Brantas Karangkates Malang district). Journal of Sustainable Technology and Applied Science (JSTAS), 2(1), 9-16. https://doi.org/10.1016/j.jstas.2021.01.002.
Hudha, M. I., & Laksmana, D. I. (2018). Glycerin purification of biodiesel production side products by distillation method. In Seminar Nasional Kimia-National Seminar on Chemistry (SNK 2018) (pp. 27–29). Atlantis Press. https://doi.org/10.2991/snk-18.2018.9.
Husen, M., Gustopo, D., & Laksmana, D. I. (2021). Product quality control using Six Sigma (DMAIC) methods to minimize waste in Bima Mandiri cigarette company Rembang, Pasuruan Regency. Journal of Sustainable Technology and Applied Science (JSTAS), 2(2), 14-22. https://doi.org/10.1016/j.jstas.2021.03.004.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Aria Dian Tri Wahyuni, Agilistya Rahayu, Dimas Indra Laksmana
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
