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THE ROLE OF MSMES AS THE MAIN PILLAR OF NATIONAL ECONOMIC STABILITY DURING THE PANDEMIC

The COVID-19 pandemic, which has impacted the world since early 2020, has significantly affected the global economy, including Indonesia. The micro, small, and medium enterprises (MSMEs) sector, as the backbone of the national economy, contributes more than 60% to the gross domestic product (GDP) and absorbs approximately 97% of non-agricultural labor. This study aims to analyze the role of MSMEs in maintaining national economic stability during the pandemic, as well as to identify the challenges and opportunities faced by this sector. The research method used is normative with a library study approach, where data is collected from various literature, official reports, and academic research. The results indicate that although MSMEs face difficulties due to declining demand and limited access to financing, they also demonstrate high adaptability and innovation capabilities, particularly through digitalization. Government support in the form of policies and assistance programs is crucial for the sustainability of MSMEs amid this crisis. This study provides recommendations for the development of more inclusive and sustainable policies to strengthen the position of MSMEs as a key pillar of national economic stability. These findings are expected to serve as a reference for policymakers and MSME actors in facing challenges in the post-pandemic era.


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https://repository.stie-mahaputra-riau.ac.id/view/2/E-Journal/241

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Author
Tiara Tiara Ivanti Ivanti

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