KnE Social Sciences

ISSN: 2518-668X

The latest conference proceedings on humanities, arts and social sciences.

Impact of Digitalization for MSME Actors in the Era of Adapting New Habits

Published date: Mar 06 2023

Journal Title: KnE Social Sciences

Issue title: IAPA 2022 International Conference and International Indonesia Conference on Interdisciplinary Studies (IICIS)

Pages: 56–65

DOI: 10.18502/kss.v8i5.12988

Authors:

Paulus Israwan Setyokopaulus.setyoko@unsoed.ac.idDepartment of Public Administration, Faculty of Social and Political Science, Universitas Jenderal Soedirman Purwokerto, Indonesia

Ranjani .Department of Public Administration, Faculty of Social and Political Science, Universitas Wijayakusuma Purwokerto, Indonesia

Abstract:

Impact is a secondary effect brought on by the adoption of a plan or strategy. The Indonesian economy has been significantly impacted by the COVID-19 outbreak. Moreover, MSMEs are among the most severely impacted economic sectors. One of the regencies with a sizable number of MSMEs is Purbalingga. People are being pushed to adjust to rather rapid digital advancements as a result of the COVID-19 epidemic. Therefore, the study aims to examine and describe in detail how digitalization has affected MSME actors in the age of forming new habits, particularly in the Purbalingga Regency. This study used a qualitative research design with procedures for collecting data from in-depth interviews, observations, and documentation. Purposive sampling was used to choose research participants, and interactive analysis was used to analyze the data. The findings of this study suggest that MSMEs in Purbalingga Regency have been more negatively impacted by the COVID-19 epidemic than other groups. For instance, there has been a sharp decline in MSME incomes and a rise in layoffs as a result of MSMEs’ inability to pay for their personnel. The Purbalingga Regency government has implemented e-commerce, specifically through ”Tuka Tuku Purbalingga,” as one of its strategies for saving MSMEs. However, the MSME actors in Purbalingga Regency have faced new challenges as a result of digitalization. This is because some MSME actors in Purbalingga Regency continued to face technical gaps and restricted internet access.

Keywords: impact, digitalization, MSMEs

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