Economics and Business
ISSN 2775-9237 (Online)
Published: 10 September 2021
Determinants of Indonesian MSME Exports and Their Performance during the Covid-19 Pandemic
M. Noor Salim, Darwati Susilastuti, Pudji Astuty
Mercubuana University (Indonesia), Universitas Borobudur (Indonesia)
Download Full-Text Pdf
Keywords: Bank Credit, Employment, Exchange Rate, Exports, GDP, Investment, Number of MSMEs
MSME proved resilient to crises, but its performance did not improve. Indonesian MSMEs when compared to other countries have low export competitiveness. The Covid-19 pandemic has weakened more than 50% of MSMEs. The research objectives are to analyze the simultaneous and partial effect of the rupiah against the US dollar exchange rate, the growth of MSME, investment, and bank credit on the export of MSME products; analyze the influence of MSME exports on GDP growth; and analyze the effect of MSME exports on employment; and to find out the export performance of MSME during the Covid-19 pandemic. Survey research with technical analysis of OLS Multiple Regression data on secondary data for the 2010-2020 quarter. Research results are: 1) Stability of the Rupiah/USD exchange rate, growth in the number of MSMEs, increased investment, and increased bank lending to the MSME sector as well as controlled inflation rates had a very significant impact on increasing exports of MSME products; 2) Exports of MSME products contribute greatly to GDP and have an impact on increasing people's per capita income; 3) The increasing export value of MSME products encourages MSME entrepreneurs to continue to increase their productivity so that this sector can absorb a significant workforce; 4) MSME's performance in the Covid-19 pandemic was shown by the decline in the value of exports and employment, but the number, investment, credit, and contribution to GDP continued to increase until the end of 2020.
Abdesamed, K.H., and K. A. Wahab. (2014). Financing of small and medium enterprises (SMEs): Determinants of bank loan application in Libya. African Journal of Business Management, Vol. 8(17), pp. 717-727.
Adrian, M.A. (2018). Empowerment Strategies Of Micro, Small, Medium Enterprises (MSMEs) To Improve Indonesia Export Performance.International Journal of Economics, Business & Accounting Research Volume 2,Issue 4, 2018
Altun, I., 2017. Determinants of The Export Performance of SMEs: Comparative Analysis of Türkish SMEs Exporting to the Middle East and European Regions.International Journal of Business and Social Science Vol. 8, No. 3; March 2017.
BPS. (2019). Statistical Yearbook of Indonesia. Jakarta. BPS-Statistics Indonesia
BPS. (2020).Statistical Yearbook of Indonesia. Jakarta. BPS-Statistics Indonesia.
Dincer, N., and M. Kandil. (2011). The effects of exchange rate fluctuations on exports: A sektoral analysis for Turkey.The Journal of International Trade & Economic Development An International and Comparative Review Volume 20, 2011 - Issue 6
European Research Studies Journal Volume XX, Issue 3A, 2017
Ghouse, S.M. (2014). Export Competitiveness of India: The Role Of MSMEs To Play.International Journal of Management Research & Review Volume 4/Issue 11/Article No-6/1069-1084
Ghozali I., and D. Ratmono. (2017). Multivariate Analysis and Econometrics. Theory, Concepts and Applications with Eviews 10. Semarang: Univ. Diponegoro.
Gujarati, D.N. and D.C. Porter. (2012). Basic Econometrics. Book 2. Ed.5th. New York. Mc.Graw Hill.
ITC. (2020). Export Potential Map. https://exportpotential.intracen.org/en/. Revealed on 28 May, 2021.
Kartikasari, D. (2017). The Effect of Export, Import and Investment to Economic Growth of Riau Islands Indonesia. International Journal of Economics and Financial Issues, 2017, 7(4), 663-667.
Katua, N.T. (2014). The Role of SMEs in Employment Creation and Economic Growth in Selected Countries. International Journal of Education and Research Vol. 2 No. 12 December 2014
Mahadika, I.N. S. Kalayci and N. Altun.(2017). Relationship between GDP, Foreign Direct Investment and Export Volume: Evidence from Indonesia. International Journal of Trade, Economics and Finance, Vol. 8, No. 1, February 2017
Maipita, I. dan S.T. Wahyudi.(2017). Income Distribution and Inequality in Indonesia: Study on Middle Class Household. Jurnal Ekonomi Pembangunan, 18 (1), 2017, 131-141.
Mulyadi S.(2014). Human Resource Economics in a Devlopment Perspective. Jakarta: PT. Raja Grafindo Persada.
Rajput, N., A. Rajput, G. Batra, S. Oberoi. (2012). Relationship of exports, Forex and MSMEs in India: An econometric study.Problems and Perspectives in Management, Volume 10, Issue 3, 2012.
Rinaldi, B. (2020). Seeing the Export Potential for Indonesian SMEs. Jakarta : UMK Indonesia.id
Rudianto &D. Susilastuti.(2019). Determinan Ekspor Industri Kerajinan Indonesia. Prosiding Semnas Cendekiawan Univ. Trisaksi. https://www.researchgate.net/publication/337058006. DOI: 10.25105/semnas.v0i0.5862. Oktober, 2019.
Rudianto & D. Susilastuti. (2021). Short-Term and Long-Term Performance of Indonesian Handicraft Industry Export to GDP and its Implications for The Employment in The MSMEs in The Digital Economic Era.Psychology an Education Journal. Vol. 58 (2): 44886-4498 DOI.https://doi.org/10.17762/pae.v58i2.2838.
Rudianto and D. Susilastuti. 2021. Short-Term and Long-Term Performance of Indonesian Handicraft Industry Export to GDP and its Implications for The Employment in The MSMEs in The Digital Economic Era. Psychology an Education Journal. Vol. 58 (2): 44886-4498 DOI.https://doi.org/10.17762/pae.v58i2.2838.
Saini, B., R. & S. Rajpurohit. (2014). An Empirical Study on Export Financing (Awareness, Impact and Satisfaction) among Handicraft Export Firms in India.Pacific Business Review International Volume 7, Issue 1, July 2014
Salim, M.N., D. Susilastuti, I.W. Rafiqah. (2020). The determinant of MSMEs Performance and Its Impact on Province GRDP. International Journal ofBusiness Economics and Management, 7(1): 1-3.
Samuelson, Paul A, & Nordhaus.(2015). Macroeconomics. Transletter: Greeta T.T., Bosco C. and Anna E. Jakarta : Gramedia Global Edukasi.
Sentosa, S.U., Ariusni and M. Triani. (2015). The Development Strategy of Small Scale Industries Crackers Sanjai to Increase Income and Employment Opportunities in Bukittinggi, Indonesia. International Journal of Business and Social Science Vol. 6, No. 11(1); November 2015
Seyoum Belay, 2014. Export-Import Theory, Practices, and Procedures Second Edition, New York: The Hawoth Press
Sharma, P. & N. Gounder. (2012). Obstacles To Bank Financing Of Micro And Small EnteIDRrises: Empirical Evidence From The Pacific With Some Policy Implications. Asia-Pacific Development Journal Vol. 19, No. 2, December 2012
Susilastuti, D., (2017). Poverty Reduction Models: Indonesian Agricultural Economic Approach. European Research Studies Journal. Vol. XX, Issue 3A: 164-176.
Tambunan, T. (2021a). Micro, Small and Medium Enterprises in Indonesia(Some Research Findings). New Delhi: Academic Publ.
Tambunan, Tulus. (2021b). The Role of MSMEs in Achieving SDGs in Developing Economics. The Case of Indonesia. Eliva Press. www.elivapress.com
Tambunan, Tulus. (2021c).Development of Small Businesses During Economic Crises: Evidence From Indonesia in Cases on Small Business Economics and Development During Economics Crises. Ed. Simon Stephens https://www.igi-global.com/publish/. DOI: 10.4018/978-1-7998-7657-1.ch001
Todaro, Michael &Smith C Stephen.(2014). Development of Economics.Transletter:Haris Munandar. Jakarta : Erlangga
Tülücea , N.S., & Doğanb, I.(2014). The Impact of Foreign Direct Investments on SMEs’ Development. Procedia - Social and Behavioral Sciences 150 ( 2014 ) 107 – 115.
UMN. (2016). Principles of Macroeconomics. The University of Minnesota Lib. Publ. Minneapolis, USA. http://open.lib.edu/macroeconomics/part/chapter-14-investment-and-economic-activity/
Yolanda, (2017a). Analysis of Factors Affecting Inflation and its Impact on Human Development Index and Poverty in Indonesia. European Research Studies Journal Volume XX, Issue 3A, 2017
Yolanda, (2017b). Impacts of Export Development on Unemployment in Indonesia. European Research Studies Journal Volume XX, Issue 3A, 2017