How to cite:
Emanuel Be. (2022). Strategy for MSMe Empowerment of Insana
Woven Fabric in the Covid-19 Situation. Journal Eduvest. Vol 2(3):
571-579
E-ISSN:
2775-3727
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https://greenpublisher.id/
Eduvest – Journal of Universal Studies
Volume 2 Number 3, March, 2022
p- ISSN 2775-3735- e-ISSN 2775-3727
STRATEGY FOR MSMe EMPOWERMENT OF INSANA
WOVEN FABRIC IN THE COVID-19 SITUATION
ARTICLE INFO ABSTRACT
Received:
Ferbuary,
26
th
2022
Revised:
March, 16
th
2022
Approved:
March, 18
th
2022
In the development of the national economy in Indonesia, the
priority is Micro, Small and Medium Enterprises (MSMEs).
MSMEs are the backbone of the people's economy that can
reduce poverty problems and their development is able to
expand the economic base and can make a significant
contribution to improving the regional economy and national
economic resilience. In order for the MSMEs of ikat buna and
sotis from Insana to survive the Covid-19 pandemic situation,
an appropriate strategy pattern is needed to maintain the
existence of MSMEs of Insana's buna and sotis woven fabrics.
The research uses qualitative methods with interview data
collection methods, participant observation and
documentation studies. Then the data analysis technique in this
study uses data collection, data reduction, data display and
conclusions from data analysis. The results of the study suggest
that the pattern of developing MSMEs for insana woven fabrics
is by innovating, updating products and then implementing
social capital by increasing business networks and increasing
income even though the situation is completely limited in the
midst of the COVID-19 pandemic.
KEYWORDS
MSMEs; Buna and sotis woven fabrics; Innovation,
Technology
This work is licensed under a Creative Commons Attribution-
ShareAlike 4.0 International
Emanuel Be
Strategy for MSMe Empowerment of Insana Woven Fabric in the Covid-19 Situation
572
INTRODUCTION
The impact of the corona virus outbreak (covid-19) which first appeared in
Wuhan, China has hit all corners of the world and has devastated the economy of all
countries, both underdeveloped countries, developing countries and developed countries
including Indonesia. The Covid-19 pandemic has had an impact on changes in the order
of social life and a decline in economic performance for most countries in the world. The
Indonesian economy also experienced a significant impact, various Micro, Small and
Medium Enterprises (MSMEs) experiencing business bottlenecks. In an effort to develop
the economy nationally, in Indonesia, making MSMEs a priority scale to be developed as
MSMEs is considered the backbone in generating the people's economy so that it can
reduce the problem of poverty in the community and can expand the people's economic
base and make a significant contribution in improving the economy in each region. or
region and increase national economic resilience. According to Kurniawan, 2011 in
(Efridiyanti & Cerya, 2021), MSMEs are considered as the pillar of the nation's economy.
Meanwhile, according to Nuhung (2012) entrepreneurship development through MSMEs
has an important role in reducing the number of community unemployment, being able to
increase the availability of jobs, reduce the number of poor people and can improve
people's welfare and build the mental and character of the country's economy.
The Covid-19 pandemic has had such a bad impact on the community's economy,
no doubt that various business sectors were affected, including more than 80 percent of
MSME actors. Santoso (2020) stated that MSMEs are the backbone of the economy that
generates 60 percent of local GDP, so it is important that the government needs to make
efforts to help MSMEs to survive during the pandemic and survive. Based on data
released by the Indonesian Ministry of Cooperatives and MSMEs (2020) that 99.99
percent of business actors in Indonesia are MSMEs with a total of 64 million units and
MSMEs have absorbed up to 97 percent of the workforce, while large companies only
absorb around 3 percent of the workforce. Meanwhile, research from the Indonesian
Ministry of National Development Planning found that throughout 2020, there were two
main problems faced by MSMEs affected by the pandemic, namely financial problems
and supply or demand. Apart from the lack of operational facilities, resources, and
funding, MSMEs are also still lacking in mastering digital platforms. From a Bank
Indonesia survey, in 2020 only around 12.5 percent of MSMEs were not economically
affected by the COVID-19 pandemic and only 27.6 percent of them were able to increase
sales turnover. This is also influenced by changes in consumer spending habits directly
and a shift to online method platforms.
As digitization increases, e-commerce and e-commerce penetration are predicted
to increase significantly and the growth of traditional e-commerce will contribute to
online purchases. The e-commerce sector can develop appropriate services to increase the
digitization of MSMEs. An adaptive approach needs to be applied by generating profits
through MSME services. Extended services for delivery and payments, logistics,
inventory management or bookkeeping, electronic money and loans can be used as a
reference. Maximizing the services offered by e-commerce platforms is not easy.
Cooperation efforts to educate MSMEs in using digital services are still a challenge.
Some e-commerce sites such as Shopee and Tokopedia have started to provide education
for sellers, but MSMEs still don't understand this consolidated service and digital
platform. so the educational approach needs to be improved. By strengthening
cooperation, the e-commerce sector can identify some of the main difficulties and identify
barriers to MSME development. One of them is the lack of digital platform literacy. After
solutions for MSMEs are developed, the e-commerce sector can provide a better
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understanding of using their online platform so that MSMEs can market their products
effectively (Stawicki et al., 2020).
With the National Economic Recovery (PEN) program which was developed to
support MSMEs by disbursing a stimulation fund of Rp. 112.84 trillion has been received
by more than 30 million MSME units in 2020. One of the policies that stand out to take
sides with MSME development is the tax exemption for MSME units during the COVID-
19 pandemic. MSMEs are greatly affected by the decline in consumption and sales, so the
extension of the tax exemption is important for sustainability considerations. MSMEs can
set aside tax money for operational or working capital expenditures, so they can survive
during the pandemic.The government can also manage tax revenues to encourage
consumption and growth (Ji et al., 2021). The momentum for economic recovery must
continue to be maintained by facilitating access to capital through appropriate regulations.
Furthermore, Indonesia's digital ecosystem can be improved by cooperating with local
governments, start-ups and e-commerce can encourage the growth of MSMEs by
increasing the purchase of local products (Yin, Moon, & Lee, 2019). Distribution and
marketing agents can be deployed for MSMEs through a strong network of partnerships.
Meanwhile, a more transparent and efficient supply chain system needs to be
implemented for local producers. Start-ups or e-commerce can contribute as an incubator
for MSMEs in ensuring product quality and business development (Adawiyah, 2021).
The condition of MSMEs during the Covid-19 Pandemic Based on the results of
a Katadata Insight Center (KIC) survey conducted on 206 MSME actors in Greater
Jakarta, the majority of MSMEs of 82.9% felt the negative impact of this pandemic and
only 5.9 percent experienced positive growth. even caused 63.9 percent of the affected
MSMEs to experience a decrease in sales turnover of more than 30 percent. Only 3.8
percent of MSMEs experienced an increase in production and sales turnover. The survey
also shows that MSMEs make a number of efforts to maintain their business conditions
by taking a number of efficiency measures such as: reducing the production of goods or
services, reducing working hours and the number of employees as well as sales or
marketing channels. However, there are also MSMEs who take the opposite step, namely
by adding marketing channels as part of their survival strategy (Katadata.co.id, 2020).
Meanwhile, survey results from several institutions such as BPS, Bappenas and the World
Bank show that this pandemic has caused many MSMEs to have difficulty paying off
loans as well as paying electricity, gas and employee salaries. Some of them even had to
do layoffs. Other obstacles faced by MSMEs include the difficulty of obtaining raw
materials, capital, declining customers, distribution and production being hampered. In
addition, changes in consumer behavior and the map of business competition also need to
be anticipated by business actors due to activity restrictions. Consumers do more
activities at home by utilizing digital technology.
Meanwhile, the changing industrial landscape and the new competition map are
marked by four business characteristics, namely Hygiene, Low-Touch, Less Crowd, and
Low-Mobility (Andayani, Tjahyadi, & Wafa, 2021). From these conditions, it can be seen
that the MSME sector, the majority of which are the lower middle class, has been heavily
affected by the Covid-19 pandemic. Companies that are successful in the pandemic era
are companies that can adapt to these four characteristics (Priyono, Moin, & Putri, 2020).
Business actors including MSMEs need to innovate in producing goods and services in
accordance with market needs. These business actors can also develop various new
business ideas and ideas that can also contribute to solving the socio-economic problems
of the community due to the impact of the pandemic (Rowan & Galanakis, 2020). One of
the solutions and challenges for the recovery of MSMEs is incentives for MSMEs
Emanuel Be
Strategy for MSMe Empowerment of Insana Woven Fabric in the Covid-19 Situation
574
through the central government's National Economic Recovery (PEN) program in 2020
and continued in 2021 (Fadhli & Rohmah, 2021). The result is that some of the informal
sector and MSMEs can survive the impact of the Covid-19 pandemic, which means no
experienced a very severe crisis compared to some large industries. In addition, this
program is expected to help reduce the decrease in termination of employment rights
(PHK) in MSMEs (Susanti & Widajatun, 2021). According to BPS data as of August
2020, there has been the creation of new job opportunities with the addition of 760
thousand people opening businesses and an increase of 4.55 million informal workers
(CNBC Indonesia, April 2021). Of the total budget of Rp. 699.43 trillion until May 2021,
the realization of the national economic recovery program (PEN) has reached Rp. 172.35
trillion. The budget realization of 24.6 percent of the total budget increased by Rp. 49.01
trillion from the realization of the first quarter, which was Rp. 123.26 trillion. As for these
sectors, namely health of Rp 24.90 trillion or 14.2 percent of the Rp 175.22 trillion
ceiling, social protection absorbed Rp 56.79 trillion or 37.8 percent of the Rp 150.28
trillion ceiling, priority programs Rp 21.8 trillion or 17.6% of the Rp 123.67 trillion
ceiling, support for MSMEs and corporations of Rp 42.03 trillion or 21.7 percent of the
Rp 193.53 trillion ceiling and business incentives of Rp 26.83 trillion or 47. 3 percent of
the Rp56.72 trillion ceiling. On the other hand, the acceleration of the distribution of
government social protection can also be seen from the amount of budget absorption or
MSME support in particular, the government must ensure that support funds can be
distributed quickly and on target. The problems faced today are the lack of integration of
existing MSME data and the MSME support scheme through the people's business credit
interest subsidy (KUR) which also needs more attention considering that there are still
many MSMEs that are still untouched by banking services.
The people of East Nusa Tenggara especially The dawan community in North
Central Timor (TTU) Regency has recognized the existence of an appreciated cultural art
that can be used as a medium for small businesses in the dawan community, known as
micro, small and medium enterprises (MSMEs). The people in TTU who have made ikat
weaving a family business that can support the family economy (Tuames, Kase, &
Nursalam, n.d.). Ikat is referred to as a medium for transforming people's messages
through objects in the form of woven fabrics. For the people of TTU, each tribe has its
own uniqueness in terms of the patterns and motifs outlined in ikat creations and none of
them are identical (Budiarto, Artiono, & Setianingsih, 2019) In traditional Timorese
society, weaving is a valuable family property because this handicraft is difficult to make.
Because in the process of making and casting the woven motifs, it is only based on the
imagination of the weaver, so that from an artistic point of view, it is very artistic
(Devendorf & Di Lauro, 2019). Weaving is very culturally valuable in terms of the
symbolic value contained therein, including the meaning of the existing decorations,
because certain decorations contained in the woven have spiritual and mystical values
according to custom. Weaving is a textile craft that is quite important in the life of the
people of NTT Province, in addition to meeting daily clothing needs as well as to increase
family income.
Timor ikat, especially in the North Central Timor district, is a home industry
inherited from the ancestors carried out by women. Woven fabrics were originally made
to meet daily needs as clothing covers and body armor as daily clothes, sleeping blankets.
Then developed for the needs of official ceremonies (party, religious ceremony,
traditional ceremony, dance, marriage, death etc.). Until now, it is an official and modern
clothing material that is designed according to fashion developments. Over time the work
of ikat weaving is growing rapidly to meet market demands and needs both locally,
nationally and even internationally (Bessie, Langga, & Sunbanu, n.d.). Ikat weaving craft
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developed at TTU has penetrated the national and even international markets. However,
during the COVID-19 pandemic, which has damaged the structure of the national and
international economy, the marketing of ikat woven products has become stagnant, while
the production of woven fabrics continues (Widiana, 2021). This requires weavers of ikat
cloth, especially women, to have sufficient knowledge and skills by selling online, given
the limited conditions due to the corona virus. Various strategies that can be carried out
by ikat craftsmen who have many patterns and motifs such as buna and sotis weave are
generally in great demand by the wider community, many from developed countries, only
by relying on social media which is still very limited in its Internet network. This requires
the craftsmen to be more tenacious and creative to make many patterns and motifs that
give a very deep impression.
The difference between sotis and buna motifs can be seen in the following pattern image;
Buna Motif Sotis Motif
Sotis cloth motifs are dominantly carried out by the people of North Central
Timor district, but the choice of colors and patterns is adjusted to moral messages,
messages of nature, human characters and so on. Especially for the Buna motif, it is only
carried out by the people of the Insana sub-district with a combination of several basic
modes and special methods. Now the woven fabric of North Central Timor Regency can
be used as clothing with modern designs with traditional nuances. Thus, this weaving
cultural heritage can be preserved without losing its original elements. Over time,
competition in the ikat industry from all corners of the province of East Nusa Tenggara
and the territory of Timor Leste, which has similar ikat weavings, has become the main
competitor. The appearance of Buna and Sotis fabrics must be able to adapt to market
demands by carrying out new innovations but still maintaining traditional basic nuances
and basic patterns. In its development, weaving is a source of income for the people of
North Central Timor, especially people in rural areas.
Buna and Sotis fabrics are distinguished by the manufacturing process and length
of work. The process of making buna fabric is more complicated because it stretches flat
like sotis woven but the motif appears like embroidery, while sotis is only flat woven by
forming patterns and colors without embroidering but through a binding and dyeing
process. In terms of working time, the process of buna takes longer than sotis, this also
has an impact on the thickness of the fabric and the price. Buna cloth is much more
expensive, on average between 2 million rupiah to 10 million rupiah compared to sotis
which ranges from 1 million to 3 million. The two types of woven fabric motifs are in
great demand by the public as materials for traditional clothing (wedding, traditional
houses, offices), souvenirs, souvenirs and so on. Especially for buna weaving, it has been
categorized as classy weaving and is only used or used by people who have a higher
social status (elite) and who have above average income. Such conditions encourage
people to continue to be creative in providing far more woven fabrics and create new
innovations to attract consumers. This is an opportunity for people in rural areas to use
woven fabrics as a new economic creation to increase their family income. These
traditional weaving crafts have the potential to be able to accommodate a lot of workers,
support the community's economy and in turn can improve the welfare of people's lives.
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Strategy for MSMe Empowerment of Insana Woven Fabric in the Covid-19 Situation
576
RESEARCH METHOD
The research methodology in this study uses a qualitative approach. This is based
on the pattern of strategies that emerged in this study which required researchers to
conduct exploratory studies in order to understand and explain the pattern of development
strategies for SMEs in buna and sotis woven fabrics which became the focus of the
problem in this study. Then the collection of various data and information will be carried
out through participatory observation, interviews, and documentation studies of the
required data sources. The research was carried out in the Insana swapraja area which has
a unique identity for Buna and sotis ikat fabrics. In this study, researchers visited subject
informants, namely traditional weavers of buna and sotis woven fabrics to obtain research
information about the pattern of MSME development strategies related to the business of
buna and sotis woven fabrics.
Researchers used focus group discussion techniques among key informants in
determining informants in this study. Focus Group Discussion is a socially oriented data
mining instrument. The key informants in this research consist of people who have
information, capabilities, and network knowledge of the research subjects which will
ultimately direct the researcher to the selected informants. The key informants in this
study were officials from related offices (the UMKM and TTU Regency Cooperatives)
and the heads of weaver groups engaged in the production of ikat fabrics and then
marketed them.
The data used in this study are primary data and secondary data. Primary data
comes from direct interviews with the heads of weaver groups. Observation aims to
record the pattern of MSME strategies, then the interview is continued to the MSME and
Cooperative Office of TTU Regency. In this study, researchers used an interactive data
analysis model according to Miles and Huberman (1993) in Herdiansyah (2013). This
data analysis model has 4 stages, namely the first stage of data grouping, the second stage
of data reduction, the third stage of data display and the fourth stage of drawing
conclusions and verifying the data.
RESULT AND DISCUSSION
In research in the Insana swapraja area, the results of data analysis showed that
the development strategy carried out by entrepreneurs or SMEs of Insana ikat fabrics was
always updating their products to be able to win consumer interest in buying buna and
sotis woven products. This is in line with the statement (informant 1) regarding the
pattern of SMEs development strategies for insana woven fabrics.
“… every day I always innovate in developing buna and sotis woven fabric
products, even every time I always try to make patterns and colors that attract a lot of
consumer tastes, but with the corona virus outbreak we have difficulty marketing my
woven products. I am with my son who has a Facebook account to try to market our
woven products through social media, but no one has responded yet…”
The statement of informant 1 is the same as the statement of informant 2
“… if I concentrate and focus on only one product, for example buna woven
fabric, which although the process takes quite a long time, from a marketing and price
point of view, it is fast and provides a fairly high economic value. I also have a network
in selling buna woven fabric products to international markets such as in Germany.
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577 http://eduvest.greenvest.co.id
However, during this covid pandemic, we experienced problems because there
were no more visits from overseas buyers. We try to use Facebook social media to
promote the woven fabrics that we produce…”
The statement of informant 1 has similarities with the statement of informant 2
which has the same thing that in the results of the research the pattern of business
development strategies for insane ikat woven fabrics must innovate by utilizing
telecommunication media to market their woven products. Even though it feels foreign
and relatively new for craftsmen in using social media to market their woven products,
there have been efforts to market their products by utilizing existing technology. In
informant 2, he also attaches importance to networks or business partners in selling
products. In this study, business networks are also called social capital, in the statement of
informant 3, in developing their SMEs also requires social capital.
“… I tried to contact family, relatives or acquaintances/friends who were in town
so that by using WhatsApp (WA) they could help promote our weaving products.
Because where I live the internet network is not yet reachable…”
The statement of informant 3 is slightly different from the statement of informant
4 which describes it.
“… if I entrust the woven buna and sotis fabrics to my family in the city to be
able to sell them directly to employees or entrepreneurs who need ikat cloth…”
From the conclusion of the statements of informant 3 and informant 4 stated that
social capital plays a role in the pattern of development strategies for SMEs in insana
woven fabrics in dealing with the Covid-19 situation even though there are restrictions on
community activities. Even though the covid conditions are less than possible, there are
always efforts of ikat woven fabric craftsmen to produce and market their woven
products.
The ability of MSMEs in dealing with the increasingly uncertain COVID-19
situation needs to be improved in order to remain able to survive for the stability of the
Indonesian economy. In addition, the human resource factor in it also has its own share.
The strategy for developing MSMEs to survive can be done by increasing the use of
communication technology so that they continue to produce and market their tenants,
including through distributing people's business loans (KUR), providing access to
marketing information and developing communication information technology to reach
every corner.
The tough challenge in developing MSMEs in the current COVID-19 pandemic
situation is marketing techniques for woven products that require a telecommunications
network. According to Novandari (2013) the intensity of competition in this industry
requires MSMEs in the country to have product advantages and the uniqueness of the
products produced that are sustainable in order to survive and win the competition.
SMEs must be able to take advantage of technological advances in marketing
their products. The use of e-commerce as one of the promotional media as well as sales
will be able to expand the sales network of insana woven fabrics to all over Indonesia and
even the world. The use of this technology can be an effective strategy in dealing with the
increasingly uncertain COVID-19 situation. In addition, the competitive advantages of
ikat canine craftsmen must always be improved in order to be able to compete at the
international level.
The development strategy in the context of the cultural industry, in this case the
human ikat weaving industry, includes:
Emanuel Be
Strategy for MSMe Empowerment of Insana Woven Fabric in the Covid-19 Situation
578
1) The process or method used by craftsmen/entrepreneurs in an effort to develop their
cultural industry products (management strategy)
2) Efforts made by craftsmen/entrepreneurs to make the raw materials and production
equipment used, as well as increasing the capacity of the workforce (investment
strategy)
3) Efforts made by craftsmen in competing and cooperating between
craftsmen/entrepreneurs in marketing their products.
In this regard, the development strategies to be known from the human ikat
weaving industry include: 1) Creativity, including: design, shape innovation, artistic taste,
values, and others. From this point it will be known whether there are specific things in
the craftsman's place, such as: local knowledge, values that limit creativity, and so on. 2)
Manufacturing technology, including: provision of raw materials, manufacturing process,
developed technology, required expertise, and others. 3) Strategies to market handicrafts.
This strategy also includes the role of the organization in which they belong.
CONCLUSION
Based on the results of the research and discussion that have been stated, it can be
concluded that the evaluation of the government's internal quality control system in the
implementation of good governance at the Gorontalo Regency Regent's Office is in the
effective category. With the acquisition of this percentage is an accumulation of:
Evaluation of the government's internal quality control system in the implementation of
good governance with indicators of the control environment in the less effective category
with a percentage of 69.93%. Evaluation of the government's internal quality control
system in the implementation of good governance with risk assessment indicators is in the
less effective category with a percentage of 68.01%. Evaluation of the government's
internal quality control system (SPIP) in the implementation of good governance with
indicators of control activities in the effective category with a percentage of 70.48%.
Evaluation of the government's internal quality control system in the implementation of
good governance with indicators of information and communication is in the effective
category with a percentage of 74.19%. Evaluation of the government's internal quality
control system (SPIP) in the implementation of good governance with indicators of
monitoring and internal control is in the less effective category with a percentage of
68.81%.
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