THE EFFECTIVENESS OF GOVERNMENT EFFORT IN SUPPORTING SMALL BUSINESS IN INDONESIA
HOW WE ORGANIZE OURSELVES
An inquiry into interconnectedness of human-made systems and communities; the structure and function of organizations; societal decision-making; economic activities and their impact of humankind and the environment”
Central Idea
Government system and decision can promote or deny equal opportunities and social justice.
Lines of Inquiry
1. How does government system work in helping small business? - Function
2. How small business contribute in developing economic growth? - Perspective
3. How big the responsibility of government to support small business? - Responsibility
Key Concept
Function
Perspective
Responsibility
SUTAINABLE DEVELOPMENT GOALS
We adopted the United Nations Goals in 2015 to address the global challenges we face, including poverty and economic growth. This is they way for us to learn more, take action, and ensure that by 2030 all people enjoy peace and prosperity.
Al-Quran Verses
QS: Al-Baqarah ayat 275:
“Padahal Allah telah menghalalkan jual beli dan mengharamkan riba”
QS: Al-Baqarah ayat 254:
“Wahai orang-orang yang beriman! Infakkanlah sebagian dari rezeki yang telah Kami berikan kepadamu sebelum datang hari ketika tidak ada lagi jual beli, tidak ada lagi persahabatan dan tidak ada lagi syafaat. Orang-orang kafir itulah orang yang zalim”.
Our researcher
team
The Team
Meet the Mentors
“Apa saja diantara rahmat Allah yang dianugerahkan kepada manusia. Maka, tidak ada yang dapat menahannya; dan apa saja yang ditahan-Nya maka tidak ada yang sanggup untuk melepaskannya setelah itu. Dan Dia lah yang Maha Perkasa, Maha Bijaksana”. (QS: Al-Fatir ayat 2)
(Ms Eva, Mr Udin, Ms Salsa)
Step 1: Identifying Global Issues
The COVID-19 pandemic has led to a dramatic loss of human life worldwide and presents an unprecedented challenge to public health, food systems and the economy. This means that the COVID-19 outbreak provides a domino effect from health to social and economic problems, especially world of work. According to WHO (2020), the economic and social disruption caused by the pandemic is devastating: tens of millions of people are at risk of falling into extreme poverty.
Moreover, in 2020, the first COVID-19 pandemic successfully leads to economic uncertainty and economic recession. Central Statistic Body (Pusat Badan Statistik Nasional) has noted that economic growth rate in the second quarter of 2020 has been a minus 5.32%. This number is contrariwise proportional to the second quarter of 2019 before pandemic at 5.05% (cnnindonesia.com, August 5, 2020).
Furthermore, in 2021, the country was hit by the merciless force of the COVID-19’s Delta variant outbreak. The economic impact was devastating. Amid the Delta variant outbreak in July to August, authorities imposed a nation-wide emergency public mobility restriction (PPKM) to curb the infection. People were instructed to stay home and it effectively shut most businesses, especially the actors of small business (MSMEs). As a result, Indonesia’s economic growth in the third quarter slowed down to only 3.51 percent.
To encourage economic growth and beat poverty in 2022, some social assistance from the government is still being maximized to the community. That’s why the students choose the topic “Effectiveness of Government Effort to Reduce Poverty” because we do believe the only way to beat poverty is by working together with the government. For that, the students want to know how effective the government effort can help to increase economic growth and beat poverty in Indonesia.
Economic Growth Before and After Pandemic in Indonesia
Step 2: Determining Time Frame
PYPx is never a one-person job. In this step, the students set the timeline and deadlines to help visualize the planning process and the end goal – that way, the students can stay motivated and focused.
Determining time frame also allows the students to prioritize when planning. Knowing what is a priority will help the students manage the time better and keep them from feeling overwhelmed. So here we use measurables deadlines into our timeline to track the progress!
To get a deeper understanding about the topic, students were asked to do some research about government program in reducing poverty in Indonesia. We discussed what have they learned from the articles during mentor meeting at school and we came up with this 6 programs:
6 Programs From Government to Beat Poverty
BLT
Bantuan Langsung Tunai (bahasa Inggris: cash transfers) atau disingkat BLT adalah program bantuan pemerintah berjenis pemberian uang tunai atau beragam bantuan lainnya untuk masyarakat miskin.
Kartu Sembako
Kartu Sembako atau yang dulunya disebut dengan Bantuan Pangan Non Tunai (BPNT) adalah bantuan sosial pangan yang disalurkan secara nontunai setiap bulan kepada Keluarga Penerima Manfaat (KPM).
Kartu Prakerja
Program Kartu Prakerja adalah program pengembangan kompetensi kerja dan kewirausahaan berupa bantuan biaya yang ditujukan untuk pencari kerja, pekerja yang terkena PHK, atau pekerja yang membutuhkan peningkatan kompetensi
PKH
Program Keluarga Harapan (PKH) adalah program pemberian bantuan sosial bersyarat kepada Keluarga Miskin (KM) yang ditetapkan sebagai keluarga penerima manfaat PKH.
JKP
Jaminan Kehilangan Pekerjaan (JKP) adalah program yang jaminan yang diberikan bagi pekerja yang mengalami PHK dan memiliki keinginan untuk bekerja kembali.
Jakpreneur
Jakpreneur merupakan program yang disediakan oleh Pemprov DKI Jakarta untuk pengembangan kewirausahaan bagi para pelaku usaha mikro, kecil, dan menengah (UMKM).
We decided to focus on:
Ex-Finance Minisiter of Indonesia, Chatib Basri, has been initiated the solution by reopening the economic activities to encourage economic growth in Indonesia. This step was chosen because the government has recognized that the more economic activities that happen during pandemics, the more it can help economic recovery, especially the small business (MSMEs). By using compare and contrast method, Alhamdulillah, we decided to focus on Jakpreneur program during this exhibition journey.
Thus, we also did the research to know what are the characteristics of small businesses. We found out that we can see from its sales turnover in a month as explained below:
Range of Sales Turnover in MSMEs
Small Business
Middle Business
Big Business
Step 3: Engaging Support From the Learning Community
Before we find out more about the effectiveness of government effort in helping small business, we invited the experts that are directly linked to the issue that we are inquiring about to get more knowledge and perspective. Besides that, the students also wanted to get the insight about the movement and action that possible to do during this pandemic situation.
Ibu Ria Sarwono is one of the actors who runs the local business that start from zero in Indonesia, Cotton Ink. She owned this clothing business since 2008 with her partner, Carline Darjanto. Now Cotton Ink is a multinational company headquartered in Jakarta, Indonesia.
From Ibu Ria Sarwono, we learned how to start and develop a business independently without government support. However, during the pandemic situations, she received support and assistance from the government in the form of discounted taxes and other incentives.
Pak Olan works in Dinas Perindustrian, Perdagangan, Koperasi, Usaha Kecil, dan Menengah (PPKUKM) DKI Jakarta.
Dinas PPKUKM has a responsibility to manage and develop the industrial sector, trade sector, either cooperative field or small and medium enterprises (MSME). One of the programs is Jakpreneur.
Moreover, in this COVID-19 pandemic, Dinas PPKUKM has a commitment to help MSME actors through a number of policies and innovations, which are:
- Vaccine
- Bantuan Permodalan Usaha Menengan (BPUM) : the government provides free financial assistance for the small business who pass the criteria and has been registered in Jakpreneur.
- Gebetan UMKM: monthly local product shopping program.
- Jumat Beli Lokal (JBM) : weekly local product shopping program through website.
- Marketing through bazaar : through Instagram and website (jakpreneurjakarta.go.id)
- Training and program development: hard skills and soft skills
Different with Ibu Ria Sarwono, Ibu Yesi is one of the actors who runs the local business under Jakpreneur (Government Program). Ibu Yesi starts the business since 2019 and now she has received 2 times assistance from the government, namely BPUM.
Our Creative Content Reflects All
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Step 4: Organizing Learning
We conducted a survey to answer these questions:
- How well the actor of small business aware with government program to support the small business in Indonesia?
- What kind of helps do the actor of small business need to support their small business? Is it relevant with the program offered by government?
There are 102 respondents in this survey. The respondents of this survey are the actor of local business in Indonesia. They are mostly in the age of 35-45 years old (78.4%) and the rest are teenagers and elderly. Moreover, most of the respondents has been run the business more than 2 years before pandemic (39.2%) and the rest of them are the respondents who run the business less than 2 years (during pandemic). Furthermore, the data stated that 68.6% are the ones who have small business which has sales turnover below 20 mio, while the others run a medium to big business which has sales turnover above 25 mio.
We found something interesting!
Registered in Online Market Place
Most of the small business actors (53.9%) have not registered yet in online market place. They do not know how to register their business to be the online seller.
Awareness of Government Program
56,9% respondents of small business actors already know about government programs, but 43.1% respondents did not know at all.
Program that I Know..
Regarding to the government’s efforts that people know, out of 102 correspondents, 59.8% know about mandatory vaccine, 40,2% know about finance assistance, 17,6% know about Jakpreneur community, 11,8% know about a bazaar facilitated by the government. Meanwhile, there are 14,7% of respondents that are really don't know about government support and assistance for small business actors in Indonesia.
Receive the Program
The data said that 91.2% of the respondents never receive any support or assistance from the government. This means that the government efforts have not been spread widely.
Small Business Actors' Needs
From the data, it is clearly seen that there are 2 major factors that most of the respondents need to develop their business, which are marketing strategy (40.2%) and fund capital (40.2%).
Training and Learning
The data said that the people need a training or counseling as evidenced by a high percentage of 79.4%. We can concluded that the small business actors are really need support and assistance to develop their local business.
Step 5: Monitoring the Exhibition
Tuning In
First, we find background problem and article from newspaper. Then, we brainstorm our ideas into one central idea which about “Government system and decision can promote or deny equal opportunities and social justice.” focusing on small business.
Sorting Out
Third, we analyze about government programs and see how effective it is from the receiver perspective.
Making Conclusion
After that, we analyze the result of the survey to come up with the conclusion that can people are aware with government program but they never receive any support from the government.
Finding Out
Second, we gather the information more from the guest speakers and do a reflection.
Going Further
Fourth, we want to know more about people awareness about government program by doing a survey to the 102 participants.
Taking Action
Finally, we share our knowledge to others by promoting government program through: Participation
Step 6: Sharing the Exhibition
It's time to share
Alhamdulillah, we have almost done! The students want to raise people’s awareness about how to start a small business through Participation.
The students found that a strong commitment to our responsibility is the key to deal with this pandemic situation, and so are we ready to remind and support each other to work together in a fight the coronavirus?
The greater our commitment, the more safe and efficient will be.
here are a glimpse of our action..
participants
We invite tante helper and om OB to join the training. There are 16 participants in total.
promote government program
After we learned from Pak Olansons about government program, in which Jakprener, we promote and explain the steps how to get government support. Especially fundings and training assistance while starting a small business.
sharing session: Pak Andi
We also invite Pak Andi, as one of the actors of small businesses, to share the experience while starting the business, Bakso,
What they feel after the training..
Panel Session
D-day
The panel presentation is not the end of our journey, but it really determines the results of our assessment. We present our result and analysis in the panel session with the head of school, school principal, PYP coordinator, grade 5 teachers, mentors and our parents. Nervousness, emotion, happy are a mixed up feelings.
Alhamdulillah,
The panel session was run smoothly, we were able to speak fluently, answered questions well, and finished on time. We hope that the knowledge gained and the actions we have taken will be good for us, mentors, parents and the community. Aamiin
“Your beliefs become your thoughts, Your thoughts become your words, Your words become your actions, Your actions become your habits, Your habits become your values, Your values become your destiny.”
― Gandhi