Micro Small Medium Enterprises (MSMEs) and Indonesian National Economies During and Post COVID-19

Sunoko, Rahmadi; Saefuddin, Asep; Nanere, Marthin; Ratten, Vanessa

doi:10.1007/978-981-16-4795-6_13

Cited by 1 publication

(6 citation statements)

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“…The same situation also happens in Indonesia. The government has serious attention toward SMEs that are convinced to be able to provide job vacancies and various economic activities in public (Sunoko, Saefuddin, Nanere, & Ratten, 2022).…”

Section: Introductionmentioning

confidence: 99%

“…As an archipelago country with 270 million population, the economic activities focus on the seashore, particularly on Java Island, the island with the largest population concentration (Sunoko et al, 2022). SMEs in Indonesia are more than 64,20 million, with Gross Domestic Product (GDP) from the manufacturing industry reaching 19,88%, followed by agro-industry (agriculture, forestry, and fishery) at 13,70% and wholesale and retail trading at 12,93%.…”

Section: Introductionmentioning

confidence: 99%

“…However, the agro-industry contributes the highest sharing of job vacancies at 29,76% (Badan Pusat Statistik, 2021). The number of micro-enterprises has reached 98,68%, and its contribution to job vacancies can absorb 116,98 million people causing the government to have serious attention to how to improve the SMEs' competitiveness, particularly in micro-enterprises with a tendency to be susceptible enterprise and easy to change the business (Sunoko et al, 2022). However, the agro-industry also faces hard challenges like population growth and the industry that accelerate the process of land use change (Nasikh, Kamaludin, Narmaditya, Wibowo, & Febrianto, 2021;Yogi, Samudro, Soesilo, & Pratama, 2022).…”

Section: Introductionmentioning

confidence: 99%

“…From the external side, the free trade agreement causes fierce competition between local and imported products (Hussain & Shah, 2021;Jagdambe & Kannan, 2020;Nie, Li, Bi, & Li, 2022;Sunoko et al, 2022;Yanase & Tsubuku, 2022). One of the commodities that are sufficient to be a concern is salt.…”

Section: Introductionmentioning

confidence: 99%

“…From the upstream side, salt farmers experience repeated problems yearly, namely the uncompetitive selling price of salt, especially during the main harvesting time. On the downstream side, processed salt by small and medium salt processing industries has difficulty competing with large-scale industries on processing iodized salt consumption (Sunoko et al, 2022). They generally have permits/ quotas for importing salt, especially to meet the needs of the various food industries.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Do the Government Support Salt Small and Medium Enterprises’ Competitiveness?

Sunoko¹,

Saefuddin²,

Syarief³

et al. 2022

Binus Business Review

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As a strategic commodity, salt in Indonesia faces the challenges of increasing imports rather than the capacity to produce locally, which SMEs almost produce. Therefore, the research explored the extent of the government’s role in the competitiveness of salt SMEs. The research applied a descriptive method with a qualitative approach. For policy analysis, literature review, observation, and in-depth interviews were conducted to analyze the effectiveness of government policies using Regulatory Impact Assessment (RIA) and Cost-Benefit Analysis (CBA). The results find that at least six issues on the existing policies need concern. It consists of local people who are allowed to produce salt, the President Decree 69/1994 role and position, the salt consumption, which is mandatory to have SNI, the changeable salt classification, the other SNI than voluntary iodized consumption salt, and SNI for food-grade salt and caustic soda (chlor-alkali products). The situation shows the government’s significant role in influencing the competitiveness of sustainable salt SMEs. Subsequently, the research proposes recommendations for the sustainable competitiveness of Small and Medium Enterprises (SMEs) on salt industry development, such as arranging new regulations or revising the existing regulation by integrating and harmonizing the interest cross-ministries, establishing the task force under the Coordinating Ministry for Economic Affairs or directly under the president to prepare the national salt industries development. The national salt classification needs to be considered as the applicable classification internationally. Salt is salt, so there is no need to differentiate it into local and imported salt. Therefore, the imported salt can be classified into food-grade and Chlor-Alkali products (CAP) salt, which should meet international standards and be mandatory.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%