HAS THE COVID-19 PANDEMIC ACCELERATED THE DIGITAL TRANSFORMATION OF MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES IN INDONESIA?

Abstract

This article examines the condition of Indonesia’s Micro, Small and Medium-sized Enterprises (MSMEs) during the COVID-19 pandemic, particularly with respect to carrying out a digital transformation, and whether the COVID-19 pandemic has forced them to accelerate this transformation. This study found that Micro, Small and Medium-sized Enterprises – MSMEs during COVID-19 have been in an unstable state due to the impact of the restrictions imposed by COVID-19-related policies. Nevertheless, MSMEs have been supported by the government, academics, and digital media in efforts to revive and accelerate the digital transformation with a view to surviving. The use of social media has helped MSMEs’ programmes and services optimise their business performance. Job simplification was introduced to more efficiently create and reach a broader range of consumers by doing promotion, service delivery, accessing media and cooperating with third parties. The speed at which the digital transformation has occurred is reflected in an improvement in MSMEs’ entrepreneurial skills and competencies.