UNS – The economic condition is getting less conducive to Indonesia as the impact of the COVID-19 pandemic. The Micro, Small, and Medium Enterprises (MSMEs) are one of the sectors that get affected. Dr. Eddy Tri Haryanto as a coach in the Centre of Entrepreneurship Development Universitas Sebelas Maret (UNS) Surakarta provides his opinion on the current MSMEs condition.
“Reviewing the history, similar condition took place in 1998. At the time, MSMEs were also affected and struggling to maintain the stability of economic conditions. The difference is this time Indonesia faces a double crisis because of the virus and all prediction as well as global economic prediction,” Dr. Eddy conveyed.
The MSMEs sector which is estimated to get the worst impact of the current crisis is those MSMEs that provide widely consumed staple goods that need imported raw materials, such as MSME tempeh, tofu, garments, and MSMEs that produce wheat-based products. Manufacturers have to start racking their brains to find substitute goods to manufacture their products. If they keep relying on imported raw materials it will be slowing down their production process.
“Currently, 80% soybeans for tempeh production are imported. For garments, 95% of raw materials are imported. The rising of dollar exchange certainly makes producers have to start looking for other ways to find alternatives,” explained Dr. Eddy responding to the factor that threatens the MSMEs.
However, in this condition, the potential for the development of MSME in the culinary sector can provide a fresh breeze. One of the basic human needs is food. The Work from Home (WFH) policy becomes a potential for culinary business to open and maintain its sales. They need to maximize collaboration with online transportation and digital marketing.
The current condition makes MSMEs actors, especially those who have not to maximize the digital platform to start learning and utilize it. They can start from simple matters such as using direct messages via WhatsApp, telegram or offer their products to close friends online. Besides that, MSME must maintain a professional attitude. The online transaction requires trust and honesty between sellers and buyers.
At the end of March, the government issued a policy regarding MSME. The Financial Service Authority (OJK) issues several countercyclical policies through OJK Decree (POJK). The POJK Number 11/Pojk.03/2020 stated that banks will implement the policies that support economic growth stimulus for debtors affected by the spread of COVID-19, including MSMEs.
“The state presents to assists its people so that the economy continues to run. The provision of a lenient credit payment policy for businessmen is good. But it should also be noted that this policy should not only be applied to those directly affected by COVID-19 at this time. But it can also be applied to all affected businesses for some time to come,” Dr. Eddy responded to the Indonesian government’s policy.
The velocity of money must continue to maintain the stability of the economy. MSMEs as an economic driver at the grassroots level has a big role. Various business strategy is worth to try in this condition. Considering the unstable global economy, the business owner who needs imported materials will experience some difficulties. Therefore, developing local products become one of the agenda that must be done intensively.
Business owners have to fully understand what is currently wanted by the community while looking for the local raw materials alternative. This condition has the potential to improve Indonesia’s economic condition in the long-term. Indonesia has more than 200 million population which is a promising market for business. This effort will be maximized if the community has a high interest to use local products.
“Love local products, this nationalism can be manifested by purchasing and using local products. Even though not all (of the local products) have good quality, but if we can maintain this habit, it will become an encouragement to keep improving the products. Also, it has a role in contributing to the national economic growth,” Dr. Eddy closed. Humas UNS/Ratri
