The impact of social distancing policy on small and medium-sized enterprises (SMEs) in Indonesia
This study aims to investigate the impact of social distancing policies on SMEs in Indonesia. It used a quantitative method with a survey design. Respondents were all SMEs in Indonesia that are affected by social distancing policies during the COVID-19 pandemic. It involved a total of 587 SME sample...
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doaj-c4bd27599427488898e0724cf61cc4df2020-11-25T04:04:42ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672020-10-0118349250310.21511/ppm.18(3).2020.4014146The impact of social distancing policy on small and medium-sized enterprises (SMEs) in IndonesiaMuhtar Lutfi0https://orcid.org/0000-0002-1648-9555Pricylia Chintya Dewi Buntuang1https://orcid.org/0000-0001-5351-2307Yoberth Kornelius2Erdiyansyah3https://orcid.org/0000-0001-8037-8959Bakri Hasanuddin4Dr., Associate Professor, Department of Economics and Development Studies, Faculty of Economics and Business, Tadulako UniversityM.Sc., Lecturer, Department of Management, Faculty of Economics and Business, Tadulako UniversityM.Sc., Associate Professor, Department of Management, Faculty of Economics and Business, Tadulako UniversityM.Sc., Lecturer, Department of Public Administration, Faculty of Social and Political Science, Tadulako UniversityDr., Associate Professor, Department of Management, Faculty of Economics and Business, Tadulako UniversityThis study aims to investigate the impact of social distancing policies on SMEs in Indonesia. It used a quantitative method with a survey design. Respondents were all SMEs in Indonesia that are affected by social distancing policies during the COVID-19 pandemic. It involved a total of 587 SME samples selected randomly. The data were collected through observations, questionnaires, and literature studies. The collected data were analyzed using descriptive statistics with SPSS software to determine the mean value. The result showed that social distancing policies affect SMEs during the COVID-19 pandemic. This is indicated by the decreasing income and demand for SMEs products, and even some have no income (mean values of 2.40) due to the social distancing policies. Besides, the policy’s impact is also shown in the increasing cost of raw materials and production costs due to supply chain problems (mean values of 4.79). The policy’s impact raises anxiety for SMEs to survive so that business actors change their plans by utilizing information technology (mean values of 4.81). This change is a strategy to survive due to the impact of the applied policies. Although social distancing policies affect SMEs’ survival during the pandemic, research findings show that SMEs in Indonesia did not terminate employment (mean values of 4.37) due to the presence of economic stimulus policies that helped SMEs survive and grow during the COVID-19 pandemic.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/14146/PPM_2020_03_Lutfi.pdfCOVID-19decreased incomeeconomic impactspandemicsupply chain |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Muhtar Lutfi Pricylia Chintya Dewi Buntuang Yoberth Kornelius Erdiyansyah Bakri Hasanuddin |
spellingShingle |
Muhtar Lutfi Pricylia Chintya Dewi Buntuang Yoberth Kornelius Erdiyansyah Bakri Hasanuddin The impact of social distancing policy on small and medium-sized enterprises (SMEs) in Indonesia Problems and Perspectives in Management COVID-19 decreased income economic impacts pandemic supply chain |
author_facet |
Muhtar Lutfi Pricylia Chintya Dewi Buntuang Yoberth Kornelius Erdiyansyah Bakri Hasanuddin |
author_sort |
Muhtar Lutfi |
title |
The impact of social distancing policy on small and medium-sized enterprises (SMEs) in Indonesia |
title_short |
The impact of social distancing policy on small and medium-sized enterprises (SMEs) in Indonesia |
title_full |
The impact of social distancing policy on small and medium-sized enterprises (SMEs) in Indonesia |
title_fullStr |
The impact of social distancing policy on small and medium-sized enterprises (SMEs) in Indonesia |
title_full_unstemmed |
The impact of social distancing policy on small and medium-sized enterprises (SMEs) in Indonesia |
title_sort |
impact of social distancing policy on small and medium-sized enterprises (smes) in indonesia |
publisher |
LLC "CPC "Business Perspectives" |
series |
Problems and Perspectives in Management |
issn |
1727-7051 1810-5467 |
publishDate |
2020-10-01 |
description |
This study aims to investigate the impact of social distancing policies on SMEs in Indonesia. It used a quantitative method with a survey design. Respondents were all SMEs in Indonesia that are affected by social distancing policies during the COVID-19 pandemic. It involved a total of 587 SME samples selected randomly. The data were collected through observations, questionnaires, and literature studies. The collected data were analyzed using descriptive statistics with SPSS software to determine the mean value. The result showed that social distancing policies affect SMEs during the COVID-19 pandemic. This is indicated by the decreasing income and demand for SMEs products, and even some have no income (mean values of 2.40) due to the social distancing policies. Besides, the policy’s impact is also shown in the increasing cost of raw materials and production costs due to supply chain problems (mean values of 4.79). The policy’s impact raises anxiety for SMEs to survive so that business actors change their plans by utilizing information technology (mean values of 4.81). This change is a strategy to survive due to the impact of the applied policies. Although social distancing policies affect SMEs’ survival during the pandemic, research findings show that SMEs in Indonesia did not terminate employment (mean values of 4.37) due to the presence of economic stimulus policies that helped SMEs survive and grow during the COVID-19 pandemic. |
topic |
COVID-19 decreased income economic impacts pandemic supply chain |
url |
https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/14146/PPM_2020_03_Lutfi.pdf |
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