Abstract
Many Micro, Small, and Medium Enterprises (MSMEs) are impacted by COVID-19 pandemic in Indonesia, especially the ones who hasn’t fully adapted to the industrial revolution 4.0. Therefore, the right empowerment strategy is needed to develop the MSMEs and help them to strive during COVID-19 pandemic. Hence, this paper presents a research to evaluate the empowerment strategy of Indonesian MSMEs implemented by the BRI Microfinance Center (BMC), an independent research institution under BRI Group as the leader of microfinance in Indonesia. This research also analyse the potentials and problems faced by BMC in conducting their empowerment effort during the pandemic and formulate alternative strategies as recommendation for future improvement. As a case study with descriptive qualitative approach, the data collections are done by in-depth interviews on BMC’s key people and literature studies on supporting documents, and triangulation. The result presented in this paper has important points to deeply understand the existing MSMEs empowerment strategy in Indonesia implemented by BMC, the strategy shifts during the pandemic, and recommendations for strategy improvements. This paper will also complete similar researches regarding the studies on empowerment strategy to enhance the MSME’s competitiveness in Indonesia.
Highlights
Modernization has become an important factor in all fields of industry in the world
Significant changes that became an impact of the industrial revolution 4.0 is the concept of the Internet of Things (IoT), which means that the internet is a crucial part in every business unit in all industrial sectors, including Micro, Small and Medium Enterprises (MSMEs)
With the MSMEs empowerment strategy as the research subject, the author sharpens the focus of this case study by determining the research object to be studied, which is Bank Rakyat Indonesia (BRI) Microfinance Center (BMC) as a new independent institution that conducts the empowerment efforts to develop MSMEs in Indonesia as one of the company's main activities
Summary
Modernization has become an important factor in all fields of industry in the world. Technology is acting as a complement, and a necessity, both for business actors and the public as users [1], especially with the new era of the industrial revolution 4.0, which is vigorously voiced throughout the world, including Indonesia [2]. The President of the Republic of Indonesia has declared the nation’s programmes for economic protection and recovery for MSMEs, including the scheme where the government institutions and State-Owned Enterprises (SOEs) will be acting as a buffer in defending the MSMEs ecosystems [9] (Indonesian Task Force for the Acceleration of Handling COVID19, 2020), and one of the efforts is through MSMEs empowerment Regarding this matter, Bank Rakyat Indonesia (BRI) seeks to continue its efforts in optimizing the empowerment of MSMEs in Indonesia to be able to survive and compete in the global market, providing capital access assistance and mentoring incubation and technology programs.
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