Inequality Impact of MSME Assistance in Indonesia on Urban Migration in the Post Pandemic Era

Abstract

Since the Covid-19 outbreak, MSMEs have become one of the most affected economic sectors. In August 2020, the Central Government of Indonesia officially launched a special program to help MSMEs namely the Direct Cash Assistance (DCA) amounting to 2.4 million rupiah, which later this amount reduced to 1.2 million rupiah in the early 2021. This study aims to recommend what things need to be prepared by policy makers if there is an increase in urban migration in Indonesia after pandemic era. The study uses two indicators in evaluating DCA Program namely the Distribution of Direct Cash Assistance, especially the distribution mechanism from government to the end users, and The Realization Number of Recipients by using the Objective-Oriented Evaluation Approach. In addition, the SWOT method is also used to analyze this DCA program. This research found that during August 2020 to March 2021, the distribution of assistance to MSME players in Eastern Indonesia was only reached 5 percent due to infrastructure constraints and incomplete database. In this finding, the researchers predict that there will be an increase of urban migration because the rising of unemployment and economic growth is still difficult to crawl up. Infrastructure constraints in remote areas in Indonesia encourage more people to migrate to urban areas in the post pandemic period.

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