Ahmad Dading Gunadi
The Ministry of National Development Planning/National Development Planning Agency, the Republic of Indonesia (Bappenas)

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COVID-19 Pandemic and MSMEs in Indonesia: Impact and Policy Responses Ahmad Dading Gunadi; Harry Lesmana; Hilda Fachrizah; Mohamad Dian Revindo; Rama Vandika Daniswara
Jurnal Ikatan Sarjana Ekonomi Indonesia Vol 10 No 2 (2021): August
Publisher : Jurnal Ekonomi Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52813/jei.v10i2.151

Abstract

Since the first confirmed case of COVID-19 infection in Indonesia in March 2020, the pandemic has hit the economy hard, especially the Micro, Small and Medium-sized Enterprises (MSMEs). This study aims to analyze the extent of the impact of the pandemic on MSMEs and the effectiveness of the government policy measures. Primary data was collected through a questionnaire administered to 2,535 MSMEs in 17 provinces during July–September 2020. The results show that MSMEs already suffered revenue slump within the second month of the pandemic and encountered both financial and non-financial hardships. The government supports and assistance was perceived as very helpful to mitigate the impact of the pandemic by the recipients. However, the programs’ distribution was hampered by either mis-targeting or lack of socialization regarding applicationrequirements, procedures and registration location. The policy, academic and managerial implications of the findings are provided.
Dealing with the COVID-19 Pandemic in Indonesia: MSMEs’ Coping Strategy, Recovery Path, and Business Transformation Ahmad Dading Gunadi; Harry Lesmana; Hilda Fachrizah; Mohamad Dian Revindo; Rama Vandika Daniswara
Jurnal Ikatan Sarjana Ekonomi Indonesia Vol 11 No 1 (2022): April
Publisher : Jurnal Ekonomi Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52813/jei.v11i1.195

Abstract

Since the first confirmed COVID-19 infection in Indonesia in March 2020, the pandemic has hit the economy hard, especially the Micro, Small, and Medium-sized Enterprises (MSMEs). This study aims to analyze MSMEs’ internal coping strategy to mitigate the impact of the pandemic, recovery strategy, and business transformation, as well as the needed government support to enable MSMEs to weather the crisis. Primary data was collected through a questionnaire administered to 2,535 MSMEs in 17 provinces. The results show that MSMEs’ coping strategy differs across firm size, sector, region, and owners’ gender. MSMEs also differ in their recovery path and medium-term business transformation in production, capital, marketing, and lines of business. Further, MSMEs require both financial and non-financial assistance, in addition to enabling the business environment to recover their businesses sustainably. The policy, academic and managerialimplications of the findings are provided.