Economic Recovery Strategies for the SME Sector Following the COVID-19 Pandemic
DOI:
https://doi.org/10.24256/kharaj.v8i2.10857Keywords:
MSMEs, COVID-19, economic recovery strategies, digitalization, National Economic Recovery ProgramAbstract
The COVID-19 pandemic has dealt a severe blow to Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, with 83% of businesses affected, 50% forced to close, and 63.9% experiencing a revenue decline of more than 30%. This study aims to analyze MSME economic recovery strategies post-COVID-19 pandemic by integrating elements of digitalization, business resilience, and government recovery policies. Using a qualitative approach through literature review and document analysis, this study synthesizes data from scientific journals, official government publications, and statistical reports. The results indicate that recovery strategies encompassing the National Economic Recovery Program (PEN), People’s Business Credit (KUR), tax incentives, credit restructuring, and digitalization yielded moderate to significant results. Digitalization has been a key driver of recovery, with 25.5 million SMEs joining the digital ecosystem by July 2024, and many reporting a 20–40% increase in revenue. Overall, SMEs’ contribution to GDP rose to 61.07% in 2024, surpassing pre-pandemic levels, while employment absorption remained stable at 97% of the total national workforce. However, the recovery remains uneven across business scales and regions, with ultra-micro businesses only reaching 75–80% of pre-pandemic levels, compounded by low digital literacy and infrastructure gaps between urban and rural areas.
References
Arifa, I., Ahmad Choiri, Wahyu Wibowo, Aminuddin, A., & Nur Azizah Panggabean. (2025). The Role of MSMEs in Boosting the National Economy. PESHUM: Journal of Education, Social Sciences, and Humanities, 4(4), 5376–5385. https://doi.org/10.56799/peshum.v4i4.9530
Marginingsih, R. (2021). The National Economic Recovery Program as a Policy to Mitigate the Impact of the COVID-19 Pandemic on the SME Sector. Moneter - Journal of Accounting and Finance, 8(2), 110–116. https://doi.org/10.31294/moneter.v8i2.10997
Misnanto, & Susanto. (2025). Evaluation of Indonesia’s Fiscal and Monetary Policies During the Crisis (Case Study: COVID-19 Pandemic). Jurnal EMT KITA, 9(2), 605–611. https://doi.org/10.35870/emt.v9i2.3949
Nugrahadi, W., Rinaldi, M., Darayani, F., 1✉, M., Tri, R., Panggabean, T., Samora Muliana, R., & Nugrahadi, E. W. (n.d.). The Role of Fiscal Policy in the Indonesian Economy.
Nursawitri, M. R., Sulistyaningsih, N., Nova, M. H., Jannah, M., Maryam, K. I., Simanjuntak, G. A. S., & Nuraya, A. S. (2025). The Effectiveness of Fiscal Policy on Aggregate Demand and Economic Growth in Indonesia: A Literature Review 2020–2024. Journal of Innovative and Creativity (Joecy), 5(2), 146–158. https://doi.org/10.31004/joecy.v5i2.147
Putri Sandrina Sitompul, Maya Martiza Sari, Cecillia Miranda Br Lumban Gaol, & Lokot Muda Harahap. (2025a). Digital Transformation of Indonesian MSMEs: Challenges and Adaptation Strategies in the Digital Economy Era. Journal of Current Digital Business Management, 2(2), 09–18. https://doi.org/10.61132/jumbidter.v2i2.487
Putri Sandrina Sitompul, Maya Martiza Sari, Cecillia Miranda Br Lumban Gaol, & Lokot Muda Harahap. (2025b). Digital Transformation of Indonesian SMEs: Challenges and Adaptation Strategies in the Digital Economy Era. Journal of Current Digital Business Management, 2(2), 09–18. https://doi.org/10.61132/jumbidter.v2i2.487
Ramadhani, N., Sugesti, A. I., Sagita, D. N., & Purwanto, E. (2025). Utilization of Digital Marketplaces to Improve MSME Performance through Communication Tools in the Digital Era. Journal of Digital Business and Communication, 2(2), 20. https://doi.org/10.47134/jbkd.v2i2.3560
Rijali, F. A., & Rusdianto, R. Y. (2025). Business Digitalization: The Utilization of Digital Technology as an Effort to Develop Business in the Era of Digital Transformation. Journal of Business Administration Studies, 1(5), 1312–1318. https://jsinabis.upnjatim.ac.id/index.php/jsinabis/article/view/287
Yolanda, C., Hasanah, U., Dhien, N., & Pembangunan, S. E. (n.d.). THE ROLE OF MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMEs) IN INDONESIA’S ECONOMIC DEVELOPMENT.
Yulya Ammi Hapsari, Putri Apriyanti, Aldi Hermiyanto, & Fahrur Rozi. (2024). Analysis of the Role of MSMEs in Economic Development in Indonesia. Journal of Management and Creative Economy, 2(4), 53–62. https://doi.org/10.59024/jumek.v2i4.464
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2026 Rizqi Rizqi Maulana, Hancrisliana Santoso, Dwi Anggraeni, Anggie Davina Putri, Dhanu Wiguno, Ahmad Setiawan Nuraya
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. In line with the license, authors are allowed to share and adapt the material. In addition, the material must be given appropriate credit, provided with a link to the license, and indicated if changes were made. If authors remix, transform or build upon the material, authors must distribute their contributions under the same license as the original.
