How MSME Financial Inclusion & MSME IoT E-Commerce Play a Role in the Indonesian Economy

The Covid-19 pandemic that has occurred since 2020 has slowed the Indonesian economy, growing negatively by 2.7%. Various policies were created to restore the economy, especially for MSMEs, including the addition of inclusive financing, suspension of credit, and lower interest expenses. This situation, coupled with the changing behavior of MSMEs, is starting to use digital transactions via IoT e-commerce, to increase their sales. The current phenomenon, in the second quarter ? of 2021, the Indonesian economy grew by 7.7 percent, the increase in IoT e-commerce by 38% and the increase in Indonesia's exports was the highest compared to previous years. This study is to determine the development of MSMEs, related to inclusive financing and the use of IoT e-commerce, in particular how they contribute to GDP, exports, and Indonesia's economic growth. By using secondary data from 2017 to. In quarter III/2021, for various main research variables, and data analysis using the Path Mediated method, it was found that inclusive financing for MSMEs made a significant contribution to GDP growth with a total effect of 39.40%. Meanwhile, the use of e-commerce by MSMEs indirectly and significantly contributed to GDP growth of only 2.63%. On the other hand, these two events have absolutely nothing to do with the export growth of the contribution of MSMEs and Indonesia's economic growth (measured by the growth of GNI per capita), which means that both the increase in exports and Indonesia's current economic growth are influenced by other factors outside the model.