The Creative Economy Agency Support for the Micro and Small Industries Performance during the COVID-19 Pandemic

Sahabudin Sidiq, Awan Setya Dewantara


The creative industry grows from the micro, small and medium industry (MSME), thus the creative economy agency should alleviate the burden MSME have due to the COVID-19 pandemic impact. Hence, the main purpose of this research is to determine the relief actions the creative industry agency should do by observing the micro-small enterprises (MSE) performances that related to the creative industry.

The framework of this research is based on the national competitiveness of Porter's and the world economic index developed by Adamkiewicz. The secondary data is taken from the MSE survey conducted by BPS and followed by the GLS cross-section weights method, which allowed to make the estimation assuming heteroscedasticity exists.      

This study finds that (1) the social competitiveness is the weakest foundation of MSE; (2) high institutional competitiveness offsets the low competitiveness of other factors; (3) the competitiveness of infrastructure and micro dimension remain be the MSE's competitiveness weakness. In order to reduce the impact of COVID-19 pandemic, the efforts may need to be done; Bekraf should take its supporter role, the optimization of Credit Guarantee Schemes for financing the MSMEs, opening up the technology which affordable and easily accessable (depot technology), and raising the entrepreneurs awareness to emphasize the cooperation in a business network.

Keywords: Bekraf; MSE; Competitiveness.

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