Strengthening the Capacity of Government Apparatus Resources in Supporting Micro Enterprises to “Go Digital” in the Special Region of Yogyakarta



Abstract Views
413

Downloads
470

Citations

Share

##plugins.themes.bootstrap3.article.sidebar##

Submitted Feb 23, 2022
Published Mar 18, 2022
10.24018/ejsocial.2022.2.2.230

Abstract viewed = 413 times

Table of Contents

##plugins.themes.bootstrap3.article.main##

This research contributes to the current knowledge on public sector support for and digital transformation of micro-enterprises. The goal of this research is to identify the necessary public-sector or government support measures for microenterprises and to provide policymakers with guidance on how to facilitate a successful digital transformation. To accomplish our goal, we conducted qualitative research with an in-depth interview with Yogyakarta micro-enterprises to collect authentic data. As a result, we were able to obtain responses from the local government as well as six sectors of MEs in Yogyakarta that was affected by the COVID-19 Pandemic Crisis, namely culinary, processed industry, creative industry, agriculture sector, fashion, and event organizer. According to the findings of the study, supporting digital transformation with full government support has a significant impact on enterprise success, income generation, and crisis resilience. In terms of assisting with the implementation of going digital, the Yogyakarta government already has a fairly good apparatus capital readiness, such as creating a marketing platform “Sibakul,” providing business consulting facilities to micro businesses in collaboration with an integrated business service center, which includes facilitating things about online business, and collaborating with relevant stakeholders such as regional apparatus organizations, and universities. However, the government’s capacity to support micro-enterprises in the Yogyakarta area still has flaws, including in terms of quality and quantity that are not yet qualified and insufficient, a lack of budget to support going digital, and government officials’ understanding of the importance of technology. Another factor to consider in the development of digitalization is the presence of research and development (R&D), which is currently lacking in Yogyakarta.

Keywords: COVID-19 Pandemic, Digital Transformation, Government Capacity, Micro-Enterprises

References

  1. Abusaada, H., & Elshater, A. (2020). COVID-19 Challenge, Information Technologies, and Smart Cities: Considerations for Well-Being. International Journal of Community Well-Being, 3(3), 417–424. https://doi.org/10.1007/s42413-020-00068-5
     Google Scholar
  2. Açikgöz, Ö., & Günay, A. (2020). The early impact of the Covid-19 pandemic on the global and Turkish economy. Turkish Journal of Medical Sciences, 50(SI-1), 520–526. https://doi.org/10.3906/sag-2004-6
     Google Scholar
  3. Adam, N. A., & Alarifi, G. (2021). Innovation practices for the survival of small and medium enterprises (SMEs) in the COVID-19 times: the role of external support. Journal of Innovation and Entrepreneurship, 10(1). https://doi.org/10.1186/s13731-021-00156-6
     Google Scholar
  4. Anderson, M., Mckee, M., & Mossialos, E. (2020). Developing a sustainable exit strategy for COVID-19: health, economic and public policy implications. Journal of the Royal Society of Medicine, 113(5), 176–178. https://doi.org/10.1177/0141076820925229
     Google Scholar
  5. Arianto, B. (2020). Pengembangan UMKM Digital di Masa Pandemi Covid-19. ATRABIS: Jurnal Administrasi Bisnis (e-Journal), 6(2), 233–247. Retrieved from https://www.jurnal.plb.ac.id/index.php/atrabis/article/view/512
     Google Scholar
  6. Ariyanti, S. (2016). Study Of Digital Divide Measurement In Indonesia. Buletin Pos Dan Telekomunikasi, 11(4), 281–292. Retrieved from https://media.neliti.com/media/publications/41183-ID-studi-pengukuran-digital-divide-di-indonesia.pdf
     Google Scholar
  7. Badan Pusat Statistik. (2018). Percentage of Households Owning/Using Computer by Province, 2015— 2018. Telecommunication Statistics in Indonesia 2018. Retrieved from https://www.bps.go.id/publication/2019/12/02/6799f23db22e9bdcf52c8e03/statistik_telekomunikasi-indonesia-2018.html. Retrieved from https://surakartakota.bps.go.id/statictable/2019/11/25/87/jumlah-penduduk-menurut-kelompok-umur-dan-jenis-kelamin-di-kota-surakarta-tahun-2018.html
     Google Scholar
  8. Capri, A. (2017). Micro and Small Businesses in Indonesia’s Digital Economy: Keys To Developing New Skills and Human Capital Table of Contents. The Asia Pacific Foundation of Canada, 56. Retrieved from https://apfcanada-msme.ca/sites/default/files/2019-03/Micro and Small Businesses in Indonesia’s Digital Economy.pdf
     Google Scholar
  9. Cotterell, D., & Bowen, Ro. (2021). SME Resilience during the Covid-19 Pandemic. Exploring Urban-rural differences. Regions. https://doi.org/10.1080/13673882.2021.00001103
     Google Scholar
  10. Cukier, W., Fox, V., & Rahnama, H. (2012). Building human infrastructure for the digital economy: Ryerson’s digital media zone. IFIP Advances in Information and Communication Technology, 386 AICT, 156–169. https://doi.org/10.1007/978-3-642-33332-3_15
     Google Scholar
  11. Curraj, E. (2018). Business digitalization of SMEs in Albania: Innovative approaches and their impact on performance.
     Google Scholar
  12. Das, M., Rangarajan, K., & Dutta, G. (2020). Corporate sustainability in SMEs: an Asian perspective. Journal of Asia Business Studies, 14(1), 109–138. https://doi.org/10.1108/JABS-10-2017-0176
     Google Scholar
  13. Denny Nazaria Rifani. (2021). Pelayanan Publik Pada Masa Pandemi Covid-19 di Kecamatan Sambaliung Kabupaten Berau. Sawala : Jurnal Administrasi Negara, 9(2), 115–124. https://doi.org/10.30656/sawala.v9i2.3761
     Google Scholar
  14. Dergiades, T., Milas, C., & Panagiotidis, T. (2020). Effectiveness of Government Policies in Response to the COVID-19 Outbreak. SSRN Electronic Journal, 1–26. https://doi.org/10.2139/ssrn.3602004
     Google Scholar
  15. Dirkareshza, R., Azura, D. M., & Pradana, R. (2021). Kebijakan Pemerintah di Masa Pandemi Covid-19: Antara Negara Sejahtera dan Negara Sehat. Jurnal Mercatoria, 14(1), 46–55. https://doi.org/10.31289/mercatoria.v14i1.5020
     Google Scholar
  16. DPR RI. (2021). Transformasi UMKM Go Digital Dalam Mendukung Pemulihan Ekonomi RUU Provinsi NTT Urgensi Penyusunan RUU PTUK. 01.
     Google Scholar
  17. Groenendaal, J., & Helsloot, I. (2021). Cyber resilience during the COVID-19 pandemic crisis: A case study. Journal of Contingencies and Crisis Management, 29(4), 439–444. https://doi.org/10.1111/1468-5973.12360
     Google Scholar
  18. Gupta, H., & Nanda, T. (2015). A quantitative analysis of the relationship between drivers of innovativeness and performance of MSMEs. International Journal of Technology, Policy and Management, 15(2), 128–157. https://doi.org/10.1504/IJTPM.2015.069202
     Google Scholar
  19. Habibi, A. (2020). Normal Baru Pasca Covid-19. Journal.Uinjkt.Ac.Id, 4(1), 197–202. https://doi.org/10.15408/adalah.v4i1.15809
     Google Scholar
  20. Huang, C., Wang, Y., Li, X., Ren, L., Zhao, J., Hu, Y., … Gu, X. (2020). Articles Clinical features of patients infected with 2019 novel coronavirus in Wuhan , China. 497–506. https://doi.org/10.1016/S0140-6736(20)30183-5
     Google Scholar
  21. Idah, Y. M., & Pinilih, M. (2020). Strategi Pengembangan Digitalisasi UMKM. Prosiding Seminar Nasional Dan Call for Papers “Pengembangan Sumber Daya Pedesaan Dan Kearifan Lokal Berkelanjutan IX,” 9(1), 195–204.
     Google Scholar
  22. Irawan, A. (2020). Challenges and Opportunities for Small and Medium Enterprises in Eastern Indonesia in Facing the COVID-19 Pandemic and the New Normal Era. TIJAB (The International Journal of Applied Business), 4(2), 79. https://doi.org/10.20473/tijab.v4.i2.2020.79-89
     Google Scholar
  23. Jayani, D. H. (2020, April 22). Posisi Kesiapan Indonesia di Dunia Hadapi Ledakan Covid-19. Katadata.Com. Retrieved from https://katadata.co.id/analisisdata/2020/04/22/posisi-kesiapan-indonesia-di-dunia-hadapi-ledakan-covid-19
     Google Scholar
  24. Kata Data Insight Center. (2020). Rapuhnya Indonesia Menghadapi Covid-19. Retrieved from https://katadata.co.id/analisisdata/2020/04/03/rapuhnya-indonesia-menghadapi-covid-19
     Google Scholar
  25. Katz, R. (2020). ECONOMIC IMPACT OF COVID-19 Report of an Economic Experts Roundtable. Imc, (July), 1–35.
     Google Scholar
  26. Kesuma, D., & Istanto, Y. (2021). Pengaruh Entrepreneurial Orientation, Market Orientation dan Innovation Product Terhadap Market Performance Saat Pandemi Covid-19. Kinerja 18, 18(2), 239–247.
     Google Scholar
  27. Khairin, F. N., Kusumawardani, A., Ginting, Y. L., & Syakura, A. M. (2021). UMKM TANGGUH : Digitalisasi dan Transformasi Hijau.
     Google Scholar
  28. Kotler, P., & Armstrong, G. (2013). Principles of Marketing (16th Globa).
     Google Scholar
  29. Lateh, M., Hussain, M. D., & Halim, M. S. A. (2017). Microenterprise development and income sustainability for poverty reduction: a literature investigation. International Journal of Business and Technopreneurship, 7(1), 23-38.
     Google Scholar
  30. Li, B. (2019). Exploring the Factors Influencing the Success of UK Service Sector SMEs : An Owner / Manager Perspective Boran Li Thesis Submitted for the Doctor of Philosophy Degree The University of Edinburgh. 501.
     Google Scholar
  31. Lukman, B., F., Lau, S. K., & Tibben, W. J. (2020). The investigation of e-marketplace adoption by small-medium enterprises using individual-technology-organization-environment (ITOE) framework: A case study in Yogyakarta Province Indonesia. Pacific Asia Journal of the Association for Information Systems, 12(4), 64–92. https://doi.org/10.17705/1pais.12403
     Google Scholar
  32. Marginingsih, R. (2021). Program Pemulihan Ekonomi Nasional Sebagai Kebijakan Penanggulangan Dampak Pandemi Covid-19 Pada Sektor UMKM. Jurnal Akuntansi Dan Keuangan, 8(2), 110–116.
     Google Scholar
  33. Maria, N. S. B., & Widayati, T. (2020). Dampak Perkembangan Ekonomi Digital terhadap Perilaku Pengguna Media Sosial dalam Melakukan Transaksi Ekonomi. Jurnal Konsep Bisnis Dan Manajemen, 6(2), 234–239. https://doi.org/10.31289/jkbm.v6i2.3801
     Google Scholar
  34. Maryanti, S., Netrawati, I. O., & Faezal, F. (2019). Menggerakan Perekonomian Melalui Pemulihan Usaha Dan Industri Mikro Kecil Menengah Pasca Bencana Gempa Bumi Di Nusa Tenggara Barat. Media Bina Ilmiah, 14(4), 2321. https://doi.org/10.33758/mbi.v14i4.342
     Google Scholar
  35. Mayr, V., Ai, D., Chapman, A., Persad, E., Klerings, I., Wagner, G., … Zachariah, C. (2020). measures to control COVID-19 : a rapid review ( Review ). Cochrane Database of Systematic Reviews. https://doi.org/10.1002/14651858.CD013574.www.cochranelibrary.com
     Google Scholar
  36. McKee, M., & Stuckler, D. (2020). If the world fails to protect the economy, COVID-19 will damage health not just now but also in the future. Nature Medicine, 26(5), 640–642. https://doi.org/10.1038/s41591-020-0863-y
     Google Scholar
  37. Midgley, J. (2008). Microenterprise, global poverty, and social development. International Social Work, 51(4), 467–479. https://doi.org/10.1177/0020872808090240
     Google Scholar
  38. Minehane, S. W. (2019). Digital Infrastructure Policy and Regulation in the Asia-Pacific Region. (September), 72. Retrieved from https://www.itu.int/en/ITU-D/Regional-Presence/AsiaPacific/SiteAssets/Pages/Events/2019/RRITP2019/ASP/ITU_2019_Digital_Infrastructure_5Sep2019FNL.pdf
     Google Scholar
  39. Mujib Ikhsani, M., Santoso, S. E. B., Bagis, F., & Hidayah, A. (2021). Strategies for Increasing the Competitiveness of Micro Small. Journal, International Reviewed, Peer Vol-, International Journal, 2021(3), 1912–1921.
     Google Scholar
  40. Muzdalifah, L., Novie, M., & Zaqiyah, S. (2020). Pemberdayaan Pelaku UMKM Menuju UMKM Go-Digital di Era Pandemi Covid 19 dan Era New Normal Bagi Pelaku UMKM Sidoarjo. Seminar Nasional Sistem …, 2200–2208. Retrieved from https://www.jurnalfti.unmer.ac.id/index.php/senasif/article/view/296
     Google Scholar
  41. Nadyan, A. F., Selvia, E., & Fauzan, S. (2021). The Survival Strategies of Micro, Small and Medium Enterprises in The New Normal Era. Dinamika Ekonomi: Jurnal Ekonomi Dan Pembangunan, 12(2), 142–149. Retrieved from https://bit.ly/dinamika_ekonomi
     Google Scholar
  42. Napitu, U., Corry, & Matondang, M. K. D. (2021). Sosialisasi pembatasan pelaksanaan kegiatan masyarakat (PPKM) mikro di kelurahan bah Kapul. Community Development Journal, 2(2), 232–241.
     Google Scholar
  43. Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., … Agha, R. (2020). The Socio-Economic Implications of the Coronavirus and COVID-19 Pandemic: A Review. In International Journal of Surgery. https://doi.org/10.1016/j.ijsu.2020.04.018
     Google Scholar
  44. Nugroho, M. A. (2015). Impact of Government Support and Competitor Pressure on the Readiness of SMEs in Indonesia in Adopting the Information Technology. Procedia Computer Science, 72, 102–111. https://doi.org/10.1016/j.procs.2015.12.110
     Google Scholar
  45. Nursalim, O. (n.d.). Strategies for Strengthening Bureaucracy Capacity of Local Governments Post-Covid-19 Pandemic.
     Google Scholar
  46. OECD. (2020). Formalization of Micro Enterprises in ASEAN. 74. Retrieved from https://asean.org/storage/2012/05/Formalisation-of-Micro-Enterprises-in-ASEAN-POLICY-INSIGHT-2020-final-3.pdf
     Google Scholar
  47. Pakpahan, A. K. (2020). Covid-19 Dan Implikasi Bagi Usaha Mikro, Kecil, Dan Menengah. Jurnal Ilmiah Hubungan Internasional, 0(0), 59–64. https://doi.org/10.26593/jihi.v0i0.3870.59-64.
     Google Scholar
  48. Prasetyanto, P. K., Destiningsih, R., & Prakoso, J. A. (2021). MSMEs Innovation Strategies during the COVID-19 Pandemic by Tofu Producers in Trunan Village, Magelang City. Jurnal Pengabdian Kepada Masyarakat (Indonesian Journal of Community Engagement), 7(2), 70. https://doi.org/10.22146/jpkm.49881
     Google Scholar
  49. Qian, X., Ren, R., Wang, Y., Guo, Y., Fang, J., Wu, Z., … Han, T. (2020). Fighting against the common enemy of COVID-19 : a practice of building a community with a shared future for mankind. 4–9.
     Google Scholar
  50. Rahman, Z. (2016). The difficulties faced by micro and small enterprises in the formal market access: The case in small and micro enterprises in the cities of Makassar and Kabupaten Gowa south Sulawesi. Journal of Humanity, 4(1), 92-103.
     Google Scholar
  51. Ramadhan, A. (2020, May 12). Ganjar ajak masyarakat “Jogo Tonggo” melawan COVID-19. Jateng Antara News.
     Google Scholar
  52. Rudiatin, E., & Hadiwardoyo, W. (2021). Pandemic and State Debt Settlement Scenarios. BASKARA: Journal of Business and …, (May 2020), 1–10. Retrieved from https://jurnal.umj.ac.id/index.php/baskara/article/view/10489
     Google Scholar
  53. Rupeika-Apoga, R., Bule, L., & Petrovska, K. (2022). Digital Transformation of Small and Medium Enterprises: Aspects of Public Support. Journal of Risk and Financial Management, 15(2), 45. https://doi.org/10.3390/jrfm15020045
     Google Scholar
  54. Siuta-Tokarska, B. (2021). Smes during the covid-19 pandemic crisis. The sources of problems, the effects of changes, applied tools and management strategies—the example of poland. Sustainability (Switzerland), 13(18). https://doi.org/10.3390/su131810185
     Google Scholar
  55. Song, H., Yang, Y., & Tao, Z. (2020). How different types of financial service providers support small- and medium- enterprises under the impact of COVID-19 pandemic: from the perspective of expectancy theory. Frontiers of Business Research in China, 14(1), 1–27. https://doi.org/10.1186/s11782-020-00095-1
     Google Scholar
  56. Sorescu, A., & Schreier, M. (2019). Innovating in the Digital Economy : Leveraging Technology to Create Value for Consumers and Firms. Journal of the Academy of Marketing Science, (Call for Papers for a Special Issue), 1–3.
     Google Scholar
  57. Sugiri, D. (2020). Menyelamatkan Usaha Mikro, Kecil dan Menengah dari Dampak Pandemi Covid-19. Fokus Bisnis : Media Pengkajian Manajemen Dan Akuntansi, 19(1), 76–86. https://doi.org/10.32639/fokusbisnis.v19i1.575
     Google Scholar
  58. Susilawati, S., Falefi, R., & Purwoko, A. (2020). Impact of COVID-19’s Pandemic on the Economy of Indonesia. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 3(2), 1147–1156. https://doi.org/10.33258/birci.v3i2.954
     Google Scholar
  59. Tran, A. N., & Jeppesen, S. (2016). SMEs in their Own Right: The Views of Managers and Workers in Vietnamese Textiles, Garment, and Footwear Companies. Journal of Business Ethics, 137(3), 589–608. https://doi.org/10.1007/s10551-015-2572-x
     Google Scholar
  60. Valerisha, A., & Putra, M. A. (n.d.). Pandemi Global COVID-19 dan Problematika Negara-Bangsa : Transparansi Data Sebagai Vaksin Socio-digital ? 2021.
     Google Scholar
  61. Waldhauser, B. (2019, June 19). Digital Infrastructure Is Fundamental To Economic Growth In Europe - Doteditorial. Dotmagazine.
     Google Scholar
  62. Wibowo, E. W. (2018). Analisis Ekonomi Digital Dan Keterbukaan. Jurnal Lentera Bisnis, Vol. 7(2, November).
     Google Scholar
  63. Wijaya, A., & Susilo, S. R. (2021). How Family Business in SME Scale Alleviate Their Business Amid Pandemic. Proceedings of the Ninth International Conference on Entrepreneurship and Business Management (ICEBM 2020), 174(Icebm 2020), 119–123. https://doi.org/10.2991/aebmr.k.210507.018
     Google Scholar
  64. Wulandira, F., Mairi, B., Sampe, S., Jacklin, L., & Lotulung, H. (2021). Pelayanan Publik Pada Masa Pandemi Covid-19 Di Kelurahan Bahu Kecamatan Malalayang Kota Manado. 17, 521–530.
     Google Scholar
  65. Yoshino, N. (2016). Major Challenges Facing Small and Medium-Sized Enterprises in Asia and Solutions for Mitigating Them. SSRN Electronic Journal, (564). https://doi.org/10.2139/ssrn.2766242
     Google Scholar
  66. Zutshi, A., Mendy, J., Sharma, G. D., Thomas, A., & Sarker, T. (2021). From challenges to creativity: Enhancing SMEs
     Google Scholar