Indonesian small businesses, which have shown resilience during previous economic downturns, have borne the brunt of the impact of the Covid-19 pandemic and are now looking for ways to revive their fortunes.
The majority of micro, small and medium enterprises (MSMEs) have experienced a steep decline in profit margins despite a significant shift to online platforms to reach their customers in the era of restricted mobility.
Curbs on transport also caused 45% of 1,180 MSMEs surveyed in 15 provinces to have problems getting raw materials and distributing their products. The result has been both demand and supply shocks, according to research conducted by the United Nations Development Programme (UNDP) and the Institute for Economic and Social Research at University of Indonesia School of Economics and Business.
The prolonged pandemic, however, has propelled them to…
