Mitigation Policies for Fashion Smes Affected by The Covid-19 Pandemic

Abstract

The COVID-19 pandemic has had an impact on MSMEs, especially in the food and beverage sector, creative industries and agriculture, both in terms of sales, financing, distribution of goods and the difficulty of raw materials. In 2019, the Creative Economy Agency established Denpasar City (the capital city of Bali Province) as one of ten Creative Regencies/Cities in Indonesia with the leading sub-sector of fashion. The development of the leading fashion sub-sector in Denpasar City is certainly inseparable from the role of MSMEs in the fashion sector, where MSME fashion in Denpasar City is the largest compared to other sectors. The purpose of this study was to analyze the mitigation strategy of fashion SMEs affected by the COVID-19 pandemic. This research is exploratory research, where data is collected through FGD instruments. Furthermore, the collected data is analyzed using prospective analysis techniques with MULTIPOL tools that can help develop a policy path based on scenarios, policies, criteria, and actions. The scenario of fashion SMEs in Bali is divided into ethnic fashion SMEs and non-ethnic fashion SMEs. In ethnic fashion SMEs, the superior policy is the policy of strengthening capital, followed by establishing partnerships. use of digital technology, and finally market orientation outside Bali. Meanwhile, for non-ethnic fashion SMEs, what is superior is the policy of establishing partnerships, followed by market orientation policies outside Bali, the use of digital technology and strengthening capital. Online marketing action excels in all policies, followed by product development and forward and backward integration.