Impact of the COVID-19 pandemic on MSMEs: Indonesia report

• by Alfa Pelupessy, Astri Sri Sulastri, Gloria Sinaga and Raunak Kapoor
• Jun 16, 2020
• 1 min
Download resource

The COVID-19 crisis has proven devastating for MSMEs in Indonesia, which have seen their revenues reduce to almost half. Our report analyzes the economic consequences of the pandemic on MSMEs, highlights their coping strategies, and provides policy recommendations to help them recover.

In Indonesia, large-scale social restrictions, falling consumer demand, and massive layoffs have affected all sectors of the economy. For the 64 million MSMEs operating in the country, this has caused severe disruptions in the supply chain and a drastic reduction in revenues.

Our report highlights the impact of COVID-19 on the MSME sector in Indonesia, particularly on micro-enterprises. We also provide policy recommendations to support the recovery of this sector.