The Role of Transportation and Logistics Infrastructure in Increasing MSMEs in Indonesia (Study in the New Normal Era)

Abstract

Background: One of the development priorities in the Government Work Plan (RKP) is the development of Micro, Small and Medium Enterprises (MSMEs). This is based on the fact that MSMEs have made many contributions to the national economy. MSMEs are the largest population of entrepreneurs in Indonesia. The existence of these MSMEs was able to withstand the crisis from 1997 to 2012 and even increased significantly in terms of both quality and quantity. One of the important supports for increasing MSMEs in Indonesia is transportation and logistics infrastructure which functions to improve the efficiency of raw material flows, delivery of goods, information and productivity. The Covid-19 pandemic that is currently occurring around the world has had a major impact on the global economy, the cessation of production activities and decreased purchasing power of society that threatens the existence of MSMEs coupled with PSBB (Large-Scale Social Restrictions) regulations which limit the number of transportation and logistics to operate. Research objective: to analyze the role of transportation and logistics infrastructure in increasing MSMEs in Indonesia (studies in the new normal era). Research method: observational qualitative descriptive analysis. Results: The results showed that transportation and logistics infrastructure played an important role in improving MSMEs in Indonesia, especially in the new normal era where all mobility was limited by still applying health protocols and strict supervision.

Keywords: Infrastructure, Transportation Logistics MSMEs, New Normal Era