Bali Takes Lessons from Pandemic, Focuses on Bolstering MSMEs
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16 February 2023 09:02 WIB
TEMPO.CO, Jakarta - The COVID-19 pandemic provided a lesson to Bali on how the micro, small, and medium enterprise (MSMEs) sector is stronger compared to other sectors.
This was especially evident from the continued growth of MSMEs even as the tourism sector declined amid the coronavirus spread.
Bali, which had been relying on its tourism sector, recorded minus 12.26 percent economic growth in the third quarter of 2020 on the back of restrictions on public activities enforced by the government due to the pandemic.
With the help of several efforts made by the central government, regional governments, and other relevant stakeholders, Bali's economy has slowly recovered.
In the third quarter of 2022, the province's economic growth returned to a positive trajectory and was recorded at 8.09 percent.
Despite the pandemic challenges, Bali's MSMEs showed growth, according to head of the Cooperatives and Small and Medium Enterprises (SMEs) Office of Bali, I Wayan Eka Dina.
The number of MSMEs in Bali swelled by 6.4 percent from 412,265 in 2021 to 440,609 in 2022.
The majority of MSMEs in Bali are engaged in the trade sector at 254,655 units (58 percent); the agricultural industry, 87,966 units (20 percent); the non-agricultural industry, 61,048 units (14 percent); and varied services, 3,694 MSMEs (8 percent).
Though their number has increased, MSMEs are still facing several problems, for instance, in terms of capital, licensing, human resources, technology, marketing/promotion, and production.
In terms of capital, one of the problems has been MSMEs' lack of information on accessing capital for developing their businesses. Meanwhile, in terms of licensing, many micro-enterprise players do not have business legality.
The knowledge of MSME players also needs to be improved so that they can manage their businesses well.
Then, in the field of technology, the problem lies in the lack of technology utilization in business operations.
Next, in terms of marketing/promotion, the scope of MSME marketing is still small, and promotions are not yet optimal. Meanwhile, on the production side, the packaging of some MSME products is less attractive and some MSMEs are still facing problems with access to raw materials.
Representatives of Bali's MSME players acknowledged those obstacles during a meeting with Committee IV of the Regional Representatives Council (DPD), which made a working visit to Bali recently.
A local bakery entrepreneur, Vera, expressed the hope that there would be more dissemination of information regarding credit assistance, such as the people's business credit (KUR) program.
She also said that she needs assistance to make proper financial reports and training to create innovative products.
Similarly, a local cosmetics entrepreneur, Djani Ananta, expressed the hope that there would be sustainable coaching for MSMEs.
Meanwhile, Dwi, a coffee entrepreneur from Plaga, Badung district, sought assistance in market development because, so far, coffee products from Plaga have been less popular compared to those from Kintamani.
Next: Strengthening MSMEs