The pandemic’s Blessing in Disguise

KOMPAS/ISMAIL ZAKARIA

A woman arranges a display of locally produced coffee on Thursday (23/7/2020) at a business meeting on micro, small and medium enterprises (MSMEs) in Mataram, West Nusa Tenggara (NTB). Local MSMEs have developed superior products from the NTB administration’s economic assistance for earthquake-affected communities. Today, MSMEs in Lombok have said they have been encouraged by the transition to the “new normal” phase of the Covid-19 mitigation measures.

Micro, small, and medium enterprises (MSMEs) always serve as a savior from crisis to crisis. When an economic crisis caused by the COVID-19 pandemic hit, MSMEs did not give up in hopes of remaining afloat.

They’ve tried to adapt by embracing digital technology. Reports from various institutions say MSMEs have been able to able to adapt during the pandemic. Mobility restrictions have not broken their will. Many adaptation efforts, such as buying daily goods from friends, selling goods through social media or e-commerce platforms, are able to help MSMEs stay afloat and avoid collapse.

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Unlike previous crises, MSMEs should embrace digital technology if they want to survive. Data from the Cooperative, and Small and Medium Enterprises (SMEs) Ministry showed that 2 million MSMEs had joined digital platforms during the pandemic. A survey conducted by the United Nations Development Program (UNDP) and University of Indonesia found that 44 percent of respondents had joined an e-commerce platform during the pandemic. This is an encouraging development.

KOMPAS/CYPRIANUS ANTO SAPTOWALYONO

Screenshot of Investree Co-Founder and CEO Adrian Gunadi\'s presentation during a media discussion with the theme "Investree - Continuing the Commitment to Support the Indonesian Economy Midst of a Pandemic Through Digital Ecosystem", Wednesday (3/2/2021).

People and businesses that had been slow to adopt digital technology have now been forced to use digital platforms to market their products. The majority of MSMEs admitted that they faced difficul-ties in making the adjustment to digital technology, but now they had adjusted well.As part of the policy to accelerate the adoption of digital technology by MSMEs, the government has pushed for various policy initiatives, such as improving MSMEs human capital, their business process and broadening their access to the market. These policy initiatives gave MSMEs the confidence to adopt digital technology.

The presence of Generation Z, who are more adept with digital technology than the previous generations, helps consumers in meeting their needs by providing digital platforms for MSMEs.

Their ability to adapt by shifting to digital platforms has made them more visible in the market, im-proving their reach to potential customers. The pandemic, which has forced people to stay home, has changed consumers’ behavior toward virtual shopping. The presence of Generation Z, who are more adept with digital technology than the previous generations, helps consumers in meeting their needs by providing digital platforms for MSMEs.

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When the pandemic ends, MSMEs should not leave the digital platforms. Rather, they should improve their capability in utilizing this platform. They could improve their service to acquire trust from customers, upgrade their facilities on e-commerce platforms, and create better interactions in the digital market.

It could be said there has been a blessing in disguise during the pandemic. MSMEs have experienced the blessing and we hope they grow even more in the post-pandemic economic recovery.

KOMPAS/KRISTI UTAMI

A batik entrepreneur in Tegal, Central Java, shows his shop on an e-commerce platform.

The pandemic has not been all bad but there has been hidden blessings for people who can adapt during this time of hardship. One day, our MSMEs will take another step by expanding their presence not only in the national market but also in the international market. Businesses that could survive the pandemic are conditioned to be winners.

(This article was translated by Lionel Priyadi)