Title:
THE EFFECT OF COVID-19 ON THE ECONOMY OF MSME CLUSTERS

Authors:
Amin Sadiqin, Indonesia

Abstract:

The COVID-19 pandemic has economic, social, and political implications not only for big countries but almost all countries in the world. Indonesia is one of the countries affected especially on the economic side. Indonesia, which is dominated by Micro, Small and Medium Enterprises (MSMEs), needs to pay special attention to this sector because the contribution of MSMEs to the national economy is quite large. The decrease in Turnover of MSMEs and cooperatives due to covid-a9 is very significant since its appearance at the end of 2019. Purpose This study is to determine and analyze the impact of the corona virus pandemic on MSMEs in Indonesia. The method of analysis used in this research is descriptive qualitative method. The business activities of MSME players are really affected by the COVID-19 pandemic that is currently happening. Evidenced by changes in turnover, decreased orders, and decreased income as well as other constraints related to business activities such as disrupted production processes and hampered marketing and distribution activities. Short-term policies that can be implemented are financial assistance in the form of soft loans or cash assistance. directly by involving the government and the private sector. Meanwhile, the long-term strategy is focused on the introduction and use of digital technology for MSMEs as well as preparation for entering the Industrial 4.0 era.