The Impact of the Covid-19 Pandemic on MSMEs in Yogyakarta: What are the Conditions and Strategies to Increase Finance

The Impact of the Covid-19 Pandemic on MSMEs in Yogyakarta: What are the Conditions and Strategies to Increase Finance
The Impact of the Covid-19 Pandemic on MSMEs in Yogyakarta: What are the Conditions and Strategies to Increase Finance





In order to support the development and help the adaptation of Micro, Small and Medium Enterprises (MSMEs) in Yogyakarta City in the new order of life amid the Covid-19 Pandemic, the City Government of Yogyakarta Yogyakarta (Pemkot) through the Economy and Cooperation Section carried out a FGD on the digitization of MSMEs.

In order to survive in the midst of a pandemic, Micro, Small and Medium Enterprises (MSMEs) must have digital skills. Due to the Covid-19 pandemic, this is the most difficult time for entrepreneurs, especially MSMEs. During this pandemic, many MSMEs were forced to close because they were unable to adapt.

The global economy is starting to recover and is expected to grow positively in 2021. After the sharp contraction in the second quarter of 2020, there has been a positive trend and economic recovery since the third quarter of 2020 globally, including in Indonesia. In an effort to implement the National Economic Recovery Program, the Government continues to provide support to MSMEs.

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MSMEs are the most important pillars of the Indonesian economy. The number of MSMEs in Indonesia is 64.19 million, of which the composition of Micro and Small Enterprises is very dominant, namely 64.13 million or about 99.92% of the entire business sector.

The COVID-19 pandemic has had a negative impact on MSMEs. According to the Katadata Insight Center (KIC) statement, the majority of MSMEs (82.9%) felt the negative impact of this pandemic and a small portion (5.9%) experienced positive growth.

The Impact Of The Covid-19 Pandemic On Msmes In Yogyakarta: What Are The Conditions And Strategies To Increase Finance

As we know that the presence of MSMEs has an important factor in society. Due to the Covid-19 pandemic, many MSME actors have had to stop their business due to various problems caused by the Covid-19 pandemic, many business actors have experienced a decrease in buyers, resulting in a decrease in sales turnover. sales. The object of the research is MSMEs registered in Sleman Regency, DI Yogyakarta for the period January – December 2020. With the global situation becoming more and more dependent on digital capabilities, MSMEs must adopt technology and go digital or they will be left behind. With the #TerusUsaha program, we hope to further improve the economy of the local community. Survey results from various institutions (BPS, Bappenas, and the World Bank) show that this pandemic has caused many MSMEs to struggle to repay loans and pay for electricity, gas, and employee salaries. Some of them had to make layoffs. Other constraints experienced by MSMEs include difficulty obtaining raw materials, capital, declining customers, and production and distribution hurdles.

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There are three things that MSME players need to pay attention to, namely marketing strategies, financial management, and product branding. These three things really need to be considered by DIY MSME players in order to survive in the face of uncertain economic conditions amid the ongoing Covid-19 pandemic,” said Syariah Milad at the 14th Bank BPD Webinar with the topic MSMEs. Keep Growing in Pandemic Period,

Entrepreneurial players, including DIY MSMEs, need to be technologically savvy, especially during this pandemic. They need to adapt and start shifting from what was previously mainstream or offline to online using everything from production, packaging, marketing, etc.

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Furthermore, Faisol added that DIY SMEs need to cooperate with online transport service providers. This collaboration is very beneficial for MSMEs because it helps to expand and facilitate the marketing or distribution of their products, especially for gastronomic MSMEs whose delivery service is growing rapidly at the moment. DIY SMEs must also innovate products that the community needs during the pandemic. They must be able to read the current demands of the market, such as the need for masks, hand sanitizers, etc., and then take advantage of these opportunities by innovating and being creative. Equally important, MSMEs must also build and increase customer trust with quality products,

Author : Rika Wulansari (Master of Management Student at Bachelorwiyata Tamansiswa University)

The Impact Of The Covid-19 Pandemic On Msmes In Yogyakarta: What Are The Conditions And Strategies To Increase Finance

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