Dampak Covid-19 Melalui Digitalisasi UMKM

Abstract

The COVID-19 pandemic has had a significant impact on the economy, social and politics. This is not only experienced by big countries, but almost all countries in the world. It seems that there is not a single country in the world that is not affected by Covid-19. Indonesia is one of the countries affected especially on the economic side. Indonesia, where 90% of its economy is supported by Micro, Small and Medium Enterprises (MSMEs), needs to pay special attention to this sector. Because MSMEs are an important part of the economy or are the wheels of the Indonesian economy, the current pandemic has resulted in many MSMEs having collapsed with falling incomes and also the large number of workers being laid off because they are no longer able to bear the costs of a quiet work life. This is what makes the increase in unemployment from the employment side while from the other side, of course, reduces the income of state finances. Because of the important role of MSMEs in Indonesia, the government finally provided and changed many policies to overcome these problems, one of which was the provision of financial assistance for poor and affected MSMEs. Apart from that, now MSMEs are starting to recognize what is called the "new face of the world economy", namely electronic-based commerce (e-commerce) which fades jurisdictional barriers (borderless) offering great benefits and opportunities for the economy. The presence of e-commerce is believed to be able to boost economic growth. At the same time, the trend of digitization has disrupted conventional trading arrangements and created new complexities. In response to this condition, an electronic-based trade cooperation forum was formed to formulate e-commerce trading rules. Indonesia needs to maximize the benefits of e-commerce regulation in international trade, especially for MSMEs, while minimizing the potential negative impact.