COVID-19: Supporting enterprises, jobs and incomes

Supporting the survival of Indonesian MSMEs with business continuity plan

The COVID-19 outbreak has hit micro, small and medium enterprises (MSMEs) and their workers the harded, including in Indonesia. The ILO in collaboration with SYIB Associations provide an online training programme on business continuity plan to help MSMEs surviving the pandemic.

News | Jakarta, Indonesia | 08 May 2020
The COVID-19 outbreak has hit Indonesian micro, small and medium enterprises (MSMEs) the hardest. MSMEs are affected on both the demand and the supply side. On the supply side, companies experience disruptions in the supply chain as well as their business , as business owners and workers are not able to work and continue the operations due to various restrictions, workers need to look after children or other dependents while schools are closed and movements of people and goods are restricted.

A micro business in Papua, Indonesia (c) ILO Jakarta
On the demand side, a dramatic and sudden loss of demand and revenue for MSMEs severely affects their ability to function, and/or causes severe liquidity shortages. Furthermore, consumers experience loss of income, fear of contagion and heightened uncertainty, which in turn reduces spending and consumption.

The key business steps provided in the module is relevant to the current COVID-19 pandemic as they provide practical, easy measures to be applied by MSMEs for improving their business operations and processes."

Tendy Gunawan, the ILO’s programme officer for enterprise development
To provide the supports needed by MSMEs, the ILO in collaboration with the Indonesian Start and Improve Your Business (SIYB) Association has provided a Business Continuity Online Training Programme for MSMEs. This programme has adapted the ILO’s Business Continuity Plan Module to help MSMEs developing and managing their business plans to be more sustainable and adaptive to the current situation.

“The module was initially developed to help MSMEs maintain their businesses during the pandemic influenza in 2010. The key business steps provided in the module is relevant to the current COVID-19 pandemic as they provide practical, easy measures to be applied by MSMEs for improving their business operations and processes,” explained Tendy Gunawan, the ILO’s programme officer for enterprise development.

This online training programme is divided into three sessions with a duration of two hours for each session and with a maximum of 20 participants for each session. The training method combines interactive coaching, counselling and consultation, given by ILO’s SYIB master trainers.

This programme also focuses on three main benefits: 1. Business awareness to understand the impact of the pandemic to business and the importance of mind-set changing responding to the change of business situations; 2. Pandemic responses by identifying business survival and continuity measures; and 3. Business continuity plan by preparing and developing business continuity plan during and post the pandemic.

Based on specific business conditions, each participating business develop a business continuity plan that will help them maintain and sustain their business during and after the pandemic."

Rini Wahyu Hariani, SIYB Master Trainer who is also the Chair of Indonesian SIYB Association
A pilot training was conducted from 4-6 May 2020 with the participation of 16 entrepreneurs. The participants were interactively discussed their business condition and how they could adapt their business to the current pandemic situation and could ensure the sustainability of the business as their source of income.

“The pilot training went well discussing key business issues that are important for MSMEs such as supply chain management, product diversification, sales and delivery channels and so forth. Based on these specific business conditions, each participating business develop a business continuity plan that will help them maintain and sustain their business during and after the pandemic,” said Rini Wahyu Hariani, SIYB Master Trainer who is also the Chair of Indonesian SIYB Association.

This programmes has gained interests from some financial organizations. The Central Bank of Indonesia of South Sulawesi, for example, has registered its MSMEs beneficiaries in Makassar for three packages of training programmes. A series of training also being scheduled with various partners in May, before the eid holiday.

“In addition, it is planned to introduce this programme to the Indonesian Employers’ Association (Apindo) and the Ministry of Manpower so that we can reach to wider MSMEs as they are the main providers of employment and one of the economic pillars of the country,” Tendy said.

SIYB is an ILO’s interrelated training packages aimed at increasing the viability of small and medium enterprises through sound management principles suitable for the environment of developing countries. In Indonesia, the SIYB program was introduced in 2002 and currently there are 400 SIYB trainers throughout the country. Today, the SYIB programme is globally recognized as an ILO trademark and has been introduced in over 100 countries worldwide.