Published date: Mar 15 2022

Journal Title: KnE Social Sciences

Issue title: 2021 Annual Conference of Indonesian Association for Public Administration

Pages: 350–356

DOI: 10.18502/kss.v7i5.10562

Irma PurnamasariIrma.purnamasari@unida.ac.idPublic Administration - Faculty of social and Political Science, Djuanda University

Denny HernawanPublic Administration - Faculty of social and Political Science, Djuanda University

Sri HastutiAdministrasi Bisnis, Lembaga Pendidikan dan Pengenmbangan Profesi Indonesia (LP3I) Jakarta

One of the sectors that has been most affected by the COVID-19 pandemic is the economic sector, especially micro, small and medium enterprises (MSMEs). Many MSMEs have experienced a decline in turnover, or have even gone out of business. The COVID-19 pandemic which has occurred in Indonesia since the beginning of January 2020 has limited the activities of MSMEs and their consumers, leading to the reduced supply of raw materials, resulting in a decline in production, and causing the number of workers to be reduced; also, demand has decreased due to restrictions on people’s activities outside the home. The OECD has stated that MSMEs have been significantly impacted by the COVID-19 situation. Policies are needed for MSMEs based on cost reduction strategies in maintaining long-term business continuity during the COVID-19 pandemic. In this research, descriptive qualitative methods were used. The results revealed that MSMEs in Cianjur Regency applied cost reduction strategies to maintain their businesses. Generally, they made savings that did not affect product quality, such as reducing the number of employees and recruiting daily employees, and reducing production costs and operating costs.

Keywords: MSME policy, cost reduction strategies, COVID-19 pandemic

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