Effectiveness of home industry activities in building the economy of the community in indonesia

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9.
Through various types of investment and investment, MSMEs are able and quickly adapt in the progress 
of the times. 
10.
Have a high degree of flexibility. 
MsME Problems Due to Pandemic 
 
The decrease in the number of MSMEs and the contribution of MSMEs to Indonesia's GDP is due to the 
pandemic since 2020. The problems experienced are as follows: 
1.
Changes in consumption patterns of people's goods and services in pandemic times from offline to online 
2.
MSMEs experience labor problems due to the enactment of Large-Scale Social Restrictions (PSBB) 
3.
Product distribution barriers 
4.
Difficulty of raw materials production 
Government Efforts to Advance Indonesian MSMEs 
 
1.
Work Copyright Law 
Of the total number of MSMEs in Indonesia, 64.13 million are MSMEs who are still in the informal 
sector so it needs to be encouraged to transform into the formal sector. Indonesia still has constraints in 
licensing that are complicated and overlap between regulations at the central and regional levels. 
Therefore, the Government seeks to accommodate the problem through the drafting of the Copyright 
Law that has been passed in 2020. One of the regulated substances is about the ease, protection and 
empowerment of MSMEs. 
The government hopes that through the Copyright Law, MSMEs can continue to grow and be 
competitive. 
2.
PEN program 
The National Economic Recovery Program (PEN) is one of the programs initiated by the government to 
restore the Indonesian economy due to the impact of Covid-19. This program is also a government 
response to the decline in the activities of affected communities, especially the informal sector or 
MSMEs. This program was created based on PP Number 23 of 2020 which was later changed to PP 
Number 43 in 2020. 
As one of the government's efforts to advance MSMEs, the following are the details of the PEN program 
for MSMEs, namely: 

Interest/margin subsidies 

Guarantee Service Return Shopping (IJP) 

Placement of Government Funds in banking 

Guarantee of loss limit of MSME credit 

Display the final income of MSMEs borne by the government 

Investment financing to cooperatives through revolving fund management institutions (LPDB) of MSME 
cooperatives 

Presidential Assistance Program (Banpres) Productive Micro-Businesses 
3.
People's Business Credit (KUR) 
Another effort from the government to advance MSMEs is the People's Business Credit (KUR) program which is 
channeled through financial institutions with guarantee patterns. The cost of services (interest rates) on credit / 
working capital financing is subsidized by the government. Kur's goal is to increase access to financing and 
strengthen MSME capital. 

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