The impact of social distancing policy on small and medium-sized enterprises (SMEs) in Indonesia

  • Received July 22, 2020;
    Accepted October 3, 2020;
    Published October 12, 2020
  • Author(s)
  • DOI
  • Article Info
    Volume 18 2020, Issue #3, pp. 492-503
  • Cited by
    25 articles

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

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.

view full abstract hide full abstract
    • Figure 1. Theoretical framework
    • Figure 2. Characteristics of respondents
    • Table 1. Descriptive statistics
    • Conceptualization
      Muhtar Lutfi, Pricylia Chintya Dewi Buntuang, Bakri Hasanuddin
    • Data curation
      Muhtar Lutfi, Pricylia Chintya Dewi Buntuang
    • Funding acquisition
      Muhtar Lutfi
    • Project administration
      Muhtar Lutfi, Erdiyansyah
    • Resources
      Muhtar Lutfi, Yoberth Kornelius
    • Supervision
      Muhtar Lutfi, Bakri Hasanuddin
    • Writing – original draft
      Muhtar Lutfi, Pricylia Chintya Dewi Buntuang, Erdiyansyah
    • Formal Analysis
      Pricylia Chintya Dewi Buntuang, Bakri Hasanuddin
    • Investigation
      Pricylia Chintya Dewi Buntuang, Yoberth Kornelius, Erdiyansyah
    • Methodology
      Pricylia Chintya Dewi Buntuang, Erdiyansyah, Bakri Hasanuddin
    • Writing – review & editing
      Pricylia Chintya Dewi Buntuang, Erdiyansyah
    • Software
      Yoberth Kornelius
    • Validation
    • Visualization