4 Facts About MSME Preparation to Reopen in the New Normal Era

The government continues to make various efforts to suppress the spread of the Corona pandemic (Covid-19). Along with this, the government is also preparing for the post-pandemic period, namely New Normal. After the Corona pandemic can be overcome, the New Normal period is expected to keep the community able to move safely and support the pace of economic growth. Because as we know, many businesses are affected at this time, including the MSME business.

Based on data from the Ministry of Cooperatives and MSMEs reported at finance.detik.com, there are at least 163,713 MSMEs and 1,785 cooperatives affected by the Covid-19 pandemic. Based on a statement from the General Chairperson of the Indonesian UMKM Association (Akumindo) Muhammad Ikhsan Ingratubun, the New Normal period is a hope for restoring MSMEs, even though the recovery process depends on the financial condition and strategy of each business actor. So, what is the readiness of UMKM to operate during the New Normal period? Following are 4 facts about the MSME business in the New Normal era.

1. The Indonesian MSME Association supports the application of New Normal
Reporting from economy.okezone.com, the Indonesian UMKM Association (Akumindo) welcomed positively the government’s policy towards the New Normal era as an effort to re-move the country’s economy. Muhammad Ikhsan Ingratubun as Chairperson of the Indonesian MSME Association (Akumindo) stated that MSME entrepreneurs strongly supported government policy. Because in addition to restoring the economy, health protocols also become important things that must be considered. MSME players must also make adjustments to the health protocol. Buying and selling activities before the New Normal period may no longer be applicable.

2. MSMEs are asked to prioritize hygiene
Reporting from travel.kompas.com, Chairman of the Indonesian Food and Beverage Entrepreneurs Association (GAPMMI) Adhi Lukman explained that to welcome the New Normal era, MSMEs must prioritize hygiene in the products they offer. According to Adhi, it is not only businesses at the middle to upper level who can produce goods effectively. MSMEs also need to implement production methods in the industrial era 4.0. In addition, of course, social distancing must still be enforced.

3. Requires supervision to ensure the application of health protocols
When buying and selling activities in the UMKM in the New Normal era have been implemented, MSME actors also need support from various parties so that the application of health protocols can be done effectively. According to Muhammad Ikhsan Ingratubun, the level of MSME readiness to implement health protocols is different because not all types of MSME have the same management system. One example is the MSMEs who sell in the market. Of course, to ensure that health protocols are implemented properly, they need supervision.

4. Being encouraged to “switch to digital”
Based on information reported from economy.okezone.com, the Minister of Cooperatives and SMEs, Teten Masduki, stated that there are 87% of MSMEs that still do not utilize digital technology. In fact, we have entered into this era. To welcome New Normal, various parties provide support to MSMEs to take advantage of online platforms, for example through the use of social media and the marketplace. The opening of this online store is intended as a solution to minimize the crowd when shopping. In addition to selling on the online platform, MSMEs are also supported to provide digital payments so as to minimize contact with customers.

The crisis period due to the Covid-19 pandemic has had a large impact on the MSME sector. To restore MSME slowly in the aftermath of a pandemic, MSME actors need to make various changes, from implementing health protocols to providing innovation in products and services. As a Payment Gateway and business solution, Cashlez supports MSMEs to operate in the New Normal era through the Point of Sales mobile cashier application that is free of subscription fees.