Small Enterprises in Semarang Find New Ways Amid Coronavirus Outbreak
Micro, small and medium enterprises (MSMEs) in Semarang, Central Java, have given rise to new habits during the Covid-19 pandemic.
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By Aditya Putra Perdana/Gregorius M Finesso
·5 minutes read
Micro, small and medium enterprises (MSMEs) in Semarang, Central Java, have given rise to new habits during the Covid-19 pandemic. When we are flexible in adapting to challenges and changes, limitations even become a space to glance at wider opportunities.
Some workers with medical masks spread leather material out on the table, then cut it in the production room of the Rorokenes woven leather bag workshop in Ngesrep village, Banyumanik district, Semarang, on Wednesday (21/10/2020). Other workers kept their distance.
The room measuring 15 meters x 10 m contained nine sewing machines, arranged 1.5 m apart from one another. Besides wearing masks at all times, workers also took care not to talk to or approach one another.
"There are two CCTV cameras at the workshop. As soon as someone takes off their mask, I immediately warn them,” said Syanaz Nadya Winanto, 44, the owner of Rorokenes. During the Covid-19 pandemic, Syanaz implemented strict health protocols.
The Rorokenes workers – numbering several dozen – regularly get new masks. The first masks are used from 9 a.m. to noon. After the break, new masks are used until 3 p.m. Air circulation is ensured and handwashing stations provided.
Strict rules are also enforced for visitors. All visitors must make an appointment.
Health protocol, says Syanaz, is absolutely necessary at a time when the pandemic is still a threat. Strict rules are also enforced for visitors. All visitors must make an appointment. "In the showroom (outlets), no more than four people are allowed at a time. So a turn system is implemented. Visitors also have to comply with health protocol," said Syanaz.
Apart from preventing the transmission of Covid-19, the new etiquette is also related to the continuity of production. After being affected by the pandemic like all other small businesses, Rorokenes\' business is slowly picking up. The worst impact was felt in May, when sales dropped 50 percent.
To get through that time, Syanaz resorted to numerous efficiency measures. At the same time, the brand image and product labeling continue to be strengthened through social media. During the pandemic, the only way to interact with consumers is through social media.
Through all the pressure from the pandemic, Syanaz learned a lesson. "Through many webinars, I transferred a lot of knowledge to employees. I continue to encourage digital marketing, so that the relationship with customers is stronger," she said.
Syanaz is reluctant to set grandiose targets. What she is currently doing is to survive while strengthening the products with new strategies, such as targeting a younger market.
Marketing constraints
The impact of the pandemic was also felt by UKM Andjani in Lamper Lor village, South Semarang, a manufacturer of bags, clutches and women\'s wallets made of woven leather or a batik-leather combination. According to the owner, Novie Sri Rejeki, 52, sales plummeted 40 percent at the start of the pandemic. As a result, production was stopped in April 2020. "I focus on selling the remaining stock," she said.
Ahead of the month of Ramadan, she was forced to lay off nine of her employees. However, the basic salary according to the UMR (regional minimum wage) was still paid. After Idul Fitri, they returned to work. Online promotion was strengthened.
"We have created new products, are offering discounts and giveaways (prizes). Starting in August, we have already recovered to 80 percent," she said.
Novie still enforces health protocol for her employees. The same protocol is applied at the outlets.
Of that number, around 700 MSMEs were in the food-processing sector.
Based on data from the Semarang administration, at least 1,538 MSMEs had been affected by the Covid-19 pandemic by early August. Of that number, around 700 MSMEs were in the food-processing sector. At the provincial level, in Central Java, at least 40,000 MSMEs were affected.
The difficulty of conventional marketing has encouraged virtual exhibitions, one of which was initiated by the Central Java representative office of Bank Indonesia and the Central Java provincial government. The event, UMKM Gayeng, ran from 21 to 23 October under the theme "Nganggo Digital” MSMEs.
The head of Bank Indonesia’s Central Java office, Soekowardojo, said the number of participants in the UMKM Gayeng exhibition had increased significantly. This year, 850 MSMEs are involved, five times as many as last year.
The exhibition displayed MSME products along with photos and telephone contacts. Those who want to have a partnership with MSMEs can contact them through the business meeting channel.
Trisila Juwantara, the owner of CV Yuasafood Berkah Makmur, a producer of food and beverages made from mountain papaya in Wonosobo, who also participated in the virtual exhibition, said innovation was the key to survival. Starting ready-to-eat fruits, he now makes juice, a sweet and sticky treat, syrup, jelly, and pudding.
The head of the Central Java Cooperatives and SME Service, Emma Rachmawati, said 53.45 percent of businesses in Central Java had difficulties with marketing. A virtual exhibition is also to be held from 25-27 October.
So while the pandemic is still rife in Semarang, new opportunities are also opening up.