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Digital Technology Adoption and Indonesia’s MSMEs during the COVID-19 Pandemic

Digital Technology Adoption and Indonesia’s MSMEs during the COVID-19 Pandemic Download (1.1 MB)

Publication Type:

Report

Publisher:

ERIA (Economic Research Institute for ASEAN and East Asia)

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This paper discusses Indonesia’s MSMEs during the COVID-19 pandemic and the digital transformation they pursue.

The coronavirus disease (COVID-19) pandemic has hit micro, small, and medium-sized enterprises (MSMEs) hard. The estimated economic impact of COVID-19 could exceed the fiscal stimulus package as a percentage of gross domestic product (GDP).

Digital technologies have helped them to better navigate the situation. Yet only 13% of MSMEs adopt the internet for marketing and delivering their products and services.

This paper discusses Indonesia’s MSMEs during the COVID-19 pandemic and the digital transformation they pursue. It will also discuss policy responses and government support to help MSMEs navigate the crisis.

Contents

  • Background
  • The Landscape of MSMEs in Indonesia
  • Policy Framework
  • Digital Technology Adoption among MSMEs in Indonesia
  • The Recovery Path for MSMEs
  • Government Support through Fiscal Stimulus
  • Policy Recommendations and Key Takeaways

Published March 2022.