Jakarta's Micro, Small, and Medium Enterprises (MSMEs) Experienced Performance Decline During the COVID-19 Pandemic

Micro, small, and medium enterprises (MSMEs) in DKI Jakarta suffered a downturn during the COVID-19 coronavirus pandemic. The implementation of social restriction policies to curb the spread of the coronavirus caused a contraction in MSME production in the capital city throughout last year.

Statistics Indonesia (BPS) recorded that MSME production contracted by 15.04% year-on-year (yoy) in Q1 2021. This decline was deeper than the contraction experienced by national MSMEs, which was 12.77% (yoy).

In Q2 2021, MSME production in Jakarta began to improve, although it still contracted by 0.61% (yoy). Meanwhile, national MSMEs still experienced a contraction of 21.31% (yoy) during that period.

The contraction in Jakarta's MSME production reached 21.31% (yoy) again in the following quarter. Nationally, MSME production contracted by 18.92% (yoy).

Then, MSME production in Jakarta decreased by 28.33% in Q4 2020. This decline was higher than that of national MSMEs, which reached 17.51%.

Cumulatively, Jakarta's MSME production decreased by 28.235 in 2020. Before the pandemic, Jakarta's MSME performance still grew by 8.57% in 2019.