DISCOVERING THE EFFECT OF SOCIAL ASSISTANCE AND CAPITAL LOANS ON MSMES IN INDONESIA

• Main Author: Fakhrizal Amri, Rafif
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/66990
• Institution: Institut Teknologi Bandung

Micro, Small, and Medium Enterprises (MSMEs) can be found in almost every country. In Indonesia, MSMEs are one of the priorities in national economic development. So far, the development of MSMEs has expanded the economic base and significantly contributed to improving the regional economy and national economic resilience. Based on data from the Ministry of Cooperatives and SMEs in 2019, the number of MSMEs in Indonesia has shown above 65 million, with a total workforce of 119 million people. This shows that both the government and the community take advantage of the potential of MSMEs so that people's welfare increases. Unfortunately, during the Covid-19 Pandemic, many MSMEs lost money and went bankrupt until they could no longer sell during the PSBB period. Therefore, the government launched a stimulus in the form of Productive Social Assistance to revive MSME productivity due to the Covid-19 Pandemic. Another way to revive MSME productivity is by providing credit loans from banks and financial technology (fintech) platforms such as P2P Lending, Crowdfunding, and others. However, social assistance provided by the government and available capital loans are still not evenly distributed to MSMEs. Therefore, in this study, researchers wanted to determine the effect of social assistance and capital loans on MSMEs. This research is presented using a qualitative analysis approach. In the process, this research uses a case study method with two ways of collecting data, by distributing questionnaires and in-depth interviews. The questionnaire was distributed to 82 respondents who have business fields as MSMEs and then 5 respondents who had received social assistance or capital loans were taken for in-depth interviews. In this study, it was found that social assistance and capital loans had a positive effect on MSMEs. So that this research is expected to be an evaluation material for the Indonesian government to pay more attention to MSMEs, especially those who have never received social assistance and capital loans. Keywords: MSMEs, Social Assistance, Capital Loans, Covid-19