When the Covid-19 pandemic hit Indonesia, Micro, Small and Medium Enterprises (MSMEs) were one of the most affected. The existence of regulation on activity restrictions issued by the government has resulted in MSME actors who are usually “close” to the community, having to limit direct contact, including with regular consumers.
This causes many MSME products to be held back because they cannot be marketed. In addition, for food products, for example, people choose to process their own food because they are afraid of being exposed to the virus or because of declining income.
Seeing this phenomenon, resilience is needed to revive MSMEs. Resilience is the ability to adapt and remain firm in difficult situations (Reivich and Shatte, 2002). In the context of MSMEs affected by the pandemic, resilience can be done in several ways. To discuss this issue, the Department of Strategic Studies and Action, FEB UI Student Executive Board held an audience with the Indonesian Ministry of Cooperatives and SMEs, on Monday (18/4), at the Office of the Indonesian Ministry of Cooperatives and SMEs.
During the meeting, a Comprehensive Study on “Empowerment of People’s Economy: Towards MSME Resilience” was discussed by 2 representatives from the Indonesian Minister of Cooperatives and SMEs—Special Staff of the Minister for People’s Economic Empowerment, Muhammad Riza Damanik, and Expert Staff of the Minister for Productivity and Competitiveness, Dr. . Yulius—along with 14 students from the Faculty of Economics and Business, Universitas Indonesia (FEB UI). Of the 14 students, 2 of them are the Head of FEB UI Student Executive Board of 2022, Rafli Amiruddin Alhaq, and Head of the Department of Strategic Studies and Action, FEB UI Student Executive Board of 2022, Janitra Mulya.
Rafli thanked the Indonesian Ministry of Cooperatives and SMEs for opening a room for audiences and discussions for fellow students. “Information related to the development, obstacles, and digitization of MSMEs; strengthening of creative economy-based SMEs; the transition of MSMEs from seller to maker; as well as policy recommendations for the Ministry of Cooperatives and SMEs RI became the topic of discussion in this meeting. We hope that this hearing will contribute to creating constructive policies that are broadly beneficial for the development of MSMEs in Indonesia,” said Rafli in his remarks
The Department of Strategic Studies and Action, FEB UI Student Executive Board conveyed six policy recommendations to raise MSMEs to its former glory and beyond. First, realizing effectiveness in developing MSMEs with clear outputs. Second, build a mindset to continue to grow and develop for MSME actors. Third, the development of digital platforms as a means for expanding information and data accessibility for MSME actors. Fourth, presenting the same and equitable regulation in the provision of bank and non-bank credit to MSMEs. Fifth, seek cooperation between MSMEs and large businesses or the private sector. Finally, increasing collaboration with academics and researchers.
In addition to the six points, there are other agreements formed by the Ministry of Culture and the Ministry of Cooperatives and SMEs of the Republic of Indonesia to support the refiliation of MSMEs. The government will increase collaboration between institutions, including ministries, to create programs that are beneficial for business actors.
One example is the acceleration of cooperation between the Ministry of Cooperatives and Indonesian SMEs with Indonesian Customs and Excise to facilitate export permits for MSME actors. The cooperation between the two institutions is expected to be able to provide export incentives to increase MSME market expansion and integrate data collection to facilitate the mapping of MSMEs with export commodities.
“The Indonesian Ministry of Cooperatives and SMEs appreciates the active role of the Department of Strategic Studies and Action, FEB UI Student Executive Board which also put forward ideas related to the development of MSMEs. We hope that in the future FEB UI Student Executive Board will continue to collaborate to research the development of MSMEs. We promise to immediately follow up on the Comprehensive Study and policy recommendations that have been given by FEB UI Student Executive Board friends so that they can be useful for the wider community,” Muhammad Riza as a representative of the Indonesian Ministry of Cooperatives and SMEs.
As a policy holder, the government encourages big businesses to facilitate research and development of MSME actors so that the products produced are more creative and innovative. In addition, the transition from seller to maker for MSME actors will be accelerated so that MSME actors do not only act as distributors, but also as producers. In the future, MSME cooperation with large companies can be developed so that MSMEs are not only recipients of capital, but also as suppliers of goods in the production process.
The Comprehensive Study conducted by the Department of Strategic Studies and Action, FEB UI Student Executive Board is a formal study that is original, authentic, focused, solution-oriented, comprehensive, and based on discussions and the thoughts of all functionaries. With this study, the Department of Strategic Studies and Action seeks to create changes and improvements to strategic issues related to socio-economics in society. The study is based on the collection of valid data and information. The study process is also escorted by the Department of Strategic Studies and Action so as to create a sustainable impact for the community.
