Sebelas Maret International Conferences, The 1st INCREDIBLE

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Strategy for Recovery the Condition of Micro, Small and Medium Enterprises (MSMEs) during the Covid-19 Pandemic and the New Normal Era in Central Java
Wiwin Widiastuti, Alan Ray Farandy, Suroso Suroso

Building: Parallel Session 2
Room: E
Date: 2020-10-27 02:45 PM – 04:00 PM
Last modified: 2020-10-21

Abstract


Currently, the global economy, including Indonesia, is experiencing uncertainty and is leading to an economic recession due to the impact of the Covid-19 pandemic. Several major countries in the world experienced negative economic growth in Q1 and II of 2020. The global economic slowdown has an impact on Indonesia's economic growth performance in 2020. Indonesia's economic growth in the first quarter of 2020 was 1.26%, while in the second quarter of 2020 it contracted minus 5,32%. The Central Java economy during the second quarter of 2020 contracted minus 5.94%, while during the first quarter of 2020 it still recorded a growth of 2.61%. The Covid-19 pandemic has a domino effect from health to social and economic problems (BPS, 2020). The Covid-19 pandemic has an impact on general economic conditions in Central Java, particularly Micro, Small and Medium Enterprises (MSMEs). Weakening domestic consumer demand and foreign exports will further weaken the performance of MSMEs in Central Java. This study addresses the impact of the pandemic on MSMEs in central Java Province. The research also answered the strategies for restoring the performance of MSMEs in Covid-19 Era.

Keywords: The Covid-19 Pandemic, MSMEs, Impact, Strategy, Government Intervention.