Location : Indonesia

Background:

“MSMEs also become one of the affected groups when there is a disaster. Their business activities and continuity are more vulnerable to natural hazards than larger firms. It is because they operate their business in sub-optimal locations, are small and financially weaker, limited access and markets (usually local markets), and lack DRR knowledge. Their capacity in handling disasters also is very limited and weak since they only
have fewer strategies compared to a large firm.

MSMEs are one of the groups that should be strengthened from an economic perspective when a disaster occurs. Integrating a disaster resilience approach to the short and long-term strategies of MSME is crucial in order to accelerate the recovery of the economic system so that it can return to its-pre shocked condition. In Indonesia, Micro, Small, and Medium Enterprise (MSME) are one of the sectors affected by the Covid-19 Pandemic, the impact was a decline in income of 84.20%, while at the same time, the revenue of Medium-Large Enterprise fell by 82.29%.

Integrating resilience to MSMEs via policies and regulations is required to strengthen Indonesia’s economy. Thus, a background study of MSME resilience is needed to achieve this aim.

Aims and Objective:

Develop a background study on various opportunities, issues, and challenges in improving MSME resilience. The background study will be used as a basis to inform the formulation of Indonesia’s Mid-term National Development Plan

Methodology:

The background study is done by conducting a literature review on MSME resilience and what should be addressed and focused on. The literature review will not only cover academic literature but also examines the legal and regulatory landscape as well as related strategic plans. The study will also include case studies on how MSMEs were able to recover, withstand, absorb, and adapt to shocks and stresses. The background study is done in Indonesia”

Expected Result: A background study on “MSME Resilience”