The impact of COVID-19 epidemic on development of micro, small and medium enterprises policy in East Kalimantan government

Finnah Fourqoniah,Muhammad Fikry Aransyah

doi:10.22437/ppd.v9i2.10805

Finnah Fourqoniah, Muhammad Fikry Aransyah

Open Access

https://doi.org/10.22437/ppd.v9i2.10805

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Abstract

This article discusses the efforts of the East Kalimantan Government handling cases of development of micro, small, and medium enterprises (MSMEs) during the COVID-19. The handling strategy can be assessed by understanding the measures, steps, and policies formulated and implemented by the East Kalimantan government. A deliberative policy analysis approach was used to analyze this case. This approach analyzes the narratives and arguments of the authorities to understand decision-making and policy implementation. The writing of this article uses a qualitative approach by utilizing the descriptive analysis method. The data collection technique used is a literature study using books, journal articles, newspapers, online news, and traditional institutions' websites. First, this paper's essential findings are reallocation and refocusing of the Covid-19 Budget for the cost of economic stimulus to strengthen capital for affected businesses and small industry players. Second, relaxation and credit restructuring. Third, the temporary closure policy for cafes or restaurants is due to residents' ignorance or non-compliance with government calls regarding health protocols. As a result, efforts to deal with it have stalled because the wider community does not support it. Combining these three factors complicates the provincial government's efforts to deal with MSMEs' development during the COVID-19 pandemic in East Kalimantan. Policy recommendations for the recovery of MSMEs in East Kalimantan Province, namely increasing the role of Indagkop through fostering and educating MSMEs in utilizing technology to sell online and the one-door policy for MSMEs.

Highlights

Since January 2020, Corona Virus Disease-IV (COVID-19) has infected more than 2,245,872 worldwide (WHO, 2020)
As the changes in the impact of Covid-19 are increasingly widespread, joint efforts are needed between the government and local governments through reallocation and refocusing of the 2020 APBN and APBD to handle the pandemic impact of Covid-19 (Sudaryanto, 2020)
This article analyzes the efforts made by the Government of East Kalimantan in dealing with and controlling the spread of COVID-19

Summary

Introduction

Since January 2020, Corona Virus Disease-IV (COVID-19) has infected more than 2,245,872 worldwide (WHO, 2020). More than 152,000 people have been confirmed to have died from this virus (WHO, 2020). It would not be brave if government leaders in many countries struggled to get out of the COVID-19 outbreak with their approaches. In China, for example, the government has responded to the Covid-19 outbreak by providing outstanding health facilities for coronavirus patients. Many SMEs were encountering cash flow issues because they had to continue paying for different fixed expenses despite having little or no revenue. These problems include decreased sales, capital problems, delays in distributing products and raw materials. There is a consensus that not all SMEs worldwide can survive Covid-19 (Syriopoulos, 2020)

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