How MSMEs in Indonesia Are Surviving during Covid-19 Pandemic

It was hoped that the assistance programs would empower the MSMEs in moving the wheel of business and maintaining the welfare of the people amid the pandemic.

What are the survival strategies?

To cope with the Covid-19 challenges, the Minister of Cooperatives and Small and Medium Enterprises encouraged Indonesian MSMEs to embrace the digital ecosystem by promoting their products via e-commerce platforms.

Also read: 7,000 MSMEs Register for Private Covid-19 Vaccination Scheme: Indonesia Business Chamber

Teten Masduki had previously said that only 13 percent of the MSMEs have utilized e-commerce as their platforms to promote and sell their products. The remaining 87 percent of the MSMEs were still selling their products offline.

Teten also said that it was important for the MSMEs to be able to adapt to the current situation by producing innovative products. Citing an example, he said that some MSMEs who sell bags or clothing have been also producing cloth face masks.

The ministry has been encouraging the MSMEs players to use digital technologies to reduce their costs. To do so, the ministry with the help of other parties have also provided various training programs for the MSMEs.

Also read: 9 Indonesia’s State Firms Award Projects Worth $818.4 Million to Local MSMEs

As the country observed National SME Day on August 12, Deputy minister for SME Eddy Satria said that with all the Covid-19 restrictions, the ministry has provided four main programs to help the MSMEs cope with the challenges and continue to grow.

The program encouraged MSMEs to enter the formal sector by registering their business activities. Once they are registered with the government, they will receive assistance and training.

Through the program, his office will also accompany the MSMEs to enter the supply chain and encourage the use of digital technologies. Until now, almost all digital platforms already have an agreement with the ministry as part of the efforts to scale up the MSMEs.

To modernize the country’s cooperatives is also part of the strategies to grow the local MSMEs.
He said that the government has allocated about 700 trillion rupiahs ($49 billion) to help recover the economy and one-sixth of the budget has been allocated for MSMEs.

With the government-led recovery plan, it is hoped that the local MSMEs could make use of the opportunities and explore innovative products to alleviate the burden of Covid-19.

Source: Kompas.com