The Effect of Covid-19 on Small Businesses in Indonesia and Small Business Ways to Survive Amid Pandemic Covid 19
The Coronavirus pandemic is not just a health disaster but has also caused chaos in the economic sector. Not only large industries, but the Coronavirus pandemic has also made small business in Indonesia be nervous.
As we know, Indonesia is currently experiencing a decline in the percentage of economic growth by 0.1% in 2020. There are several impacts due to Covid 19 on the small business sector in Indonesia, among others:
First, there is a decline in sales due to reduced community activity outside as consumers. Second, capital difficulties due to difficult capital turnover due to a decreasing sales rate. Third, there are barriers to product distribution due to restrictions on the movement of product distribution in certain areas. Fourth, there is difficulty in raw materials because a small business depends on the availability of raw materials from other industrial sectors.
Small business entrepreneurs can do is create new creativity, such as: starting using social media, implementing health protocols when running a small business, developing a digital marketing strategy, and switching to marketplaces or e-commerce.
The Government has also issued a policy in order to empower small businesses in the COVID-19 pandemic situation. There are several MSMEs/small business protection schemes implemented by the government, such as (a) providing social assistance to poor and vulnerable small business actors, (b) tax incentives for small business in Indonesia; (c)relaxation and credit restructuring for small business in Indonesia; (d) expansion of small business working capital financing; (e) placing ministries, BUMN and local governments as a buffer for MSME’s/small business products; and (f) e-learning a job training.
With the creativity of entrepreneurs and government policies, it is hoped that it can help improve the existing economy in Indonesia after the Covid-19 pandemic, especially for small businesses in Indonesia.
Author : Dani Galih Prasetyo — Muhammadyah Malang Uninversity