Digitizing Micro, Small and Medium Enterprises in the Midst of a Pandemic

The National Industrial Development Master Plan (RIPIN) 2015-2035 is to place small-scale industries in the long term as one of the contributors to the national economy. In economic development in Central Java Province, the role of Micro and Small Industries (IMK) is quite strategic. The IMK sector business is considered to be able to withstand the economic crisis compared to large-scale businesses. IMK's business is one of the developments of the economic sector to absorb the growing workforce. The results of the Small Micro Industry (IMK) survey conducted by the Central Agency in 2019 stated that the number of IMK businesses in Central Java Province was recorded at around 912.42 thousand businesses, with an average number of IMK businesses per Regency/City of around 26 thousand businesses. Most IMK businesses are in Purbalingga Regency (73.72 thousand businesses). IMK business in Central Java is dominated by the Food Industry group by 32.06 percent; the apparel industry group by 18.88 percent; the wood, wood and cork industry group by 14.08 percent. The micro and small industry (IMK) employs 1.87 million people with the proportion of women working as many as 962, 59 thousand people (51.34 percent) and 912.33 thousand male workers (48.66 percent).

However, in the midst of this thriving Micro and Small Industry, the world was suddenly shaken by the arrival of the COVID-19 pandemic storm. The current economic challenges are very heavy, people are in a state of alert and very careful by limiting travel and consumption, of course this has an impact on buying and selling transactions in the market. Various elements have been affected by the pandemic, including Micro, Small and Medium Enterprises. The enactment of a policy on large-scale social restrictions to the imposition of restrictions on community activities not only made a number of large companies lose money, but the owners of the Micro and Small Industry were no less affected.

The loss of supply chains has disrupted and affected business mobility. Small business actors must be able to adapt and survive in a very different environment. The government's efforts to maximize distribution channels throughout Indonesia through massive infrastructure development in Indonesia seem pointless because Covid-19 has destroyed everything. The cessation of distribution activities is certainly very detrimental to business players in this industry, they are now confused about how to distribute products, especially for SMEs who have started to expand their market reach outside the region, or even across islands.

However, with the development of technology and innovation, there will always be hope. To survive during the pandemic, business actors must have technological capabilities and be more daring to innovate. The tangible manifestation of using this technology is by “Digitizing Business”, this means building a website that is easy for customers to reach in buying products online. Business actors must be able to adapt to changing customer behavior and desires, whether it is online-based ordering, free and fast delivery, or more varied digital payment options, so the chances of success will be greater. In the midst of all the limitations of society due to various policies in order to cut the chain of the spread of Covid 19, the Central Statistics Agency is still trying to provide information about the general picture of Micro and Small Industries in Central Java Province, namely by conducting the 2021 Micro and Small Industry Survey. Hopefully the results of the survey will be a basis for government to determine policies in the industrial sector, especially during the pandemic. That is all and thank you.