Implication of Covid-19 Pandemic on Middle and Micro Business Resistance (UMKM) in Indonesia

Abstract

The world trade war and the outbreak of the Covid-19 corona pandemic have had a major impact on
the economy in Indonesia. Lockdown in several countries has huge implications and economic implications.
transportation, aviation, and logistics are included in a very important sector, namely agrobusiness, where the
food supply chain will be constrained, especially with the uneven distribution. Current economic challenges are
very heavy. MSME is the first sector affected by Covid-19. However, the government has implemented a
number of policies and stimuli to keep the business running, while maintaining the people's purchasing power.
This study examines the impact of the co-19 pandemic on MSME resilience. (Micro, Small and Medium
Enterprises). The phenomenon that occurs 37,000 small and medium enterprises affected by co-19, almost 37%
affected is the micro level, 56% of MSMEs have decreased sales, 22% of MSME players have capital
difficulties, 35% have difficulty in marketing, where MSMEs are required to market digitally in the covid-19
pandemic, 15% of distribution is hampered and 4% are raw material difficulties. MSMEs cannot carry out their
business activities so that they are disrupted by their ability to meet credit obligations. Non-performing loans
(NPL) for banking MSMEs can increase significantly, which has the potential to further worsen economic
conditions. In this research, qualitative scoring is used where the results of data analysis in the form of exposure
to the situation under study are presented in the form of narrative descriptions. The results of the study showed
that the co-19 pandemic was very significant to the resilience of MSME businesses. Therefore, it was necessary
to implement 5 protection and recovery of MSMEs amid the co-19 pandemic.