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The impact of the economic crisis on micro, small, and medium enterprises and their crisis mitigation measures in Southeast Asia with reference to Indonesia

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  • Tulus T. H. Tambunan

Abstract

The literature on the impact of the economic crisis on micro, small, and medium enterprises (MSMEs) and how they deal with it is still limited. Focusing on the 1997–1998 Asian financial crisis and the 2008–2009 global financial crisis, this study aims to fill this gap. There are two key questions: how these two economic crises have affected MSMEs and what were then their crisis mitigation (CM) measures. To answer these questions, this study reviews experiences in several countries in Southeast Asia with the impacts of these two crises on MSMEs and their responses to the crises. It shows that the impact of the 1997/1998 crisis on MSMEs is different from the 2008/2009 crisis. Findings from a survey of MSMEs affected by the 2008–2009 crisis indicate that finding new customers or markets in other countries unaffected by the crisis or switching to the domestic market was the most widely adopted CM measure. For other respondents who made adjustments to their workforce, the most important form was to reduce working day.

Suggested Citation

  • Tulus T. H. Tambunan, 2019. "The impact of the economic crisis on micro, small, and medium enterprises and their crisis mitigation measures in Southeast Asia with reference to Indonesia," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 6(1), pages 19-39, January.
    • Handle: RePEc:bla:asiaps:v:6:y:2019:i:1:p:19-39
    DOI: 10.1002/app5.264
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    References listed on IDEAS

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    1. Jan Wengel & Edgard Rodriguez, 2006. "SME Export Performance in Indonesia After the Crisis," Small Business Economics, Springer, vol. 26(1), pages 25-37, February.
    2. Sato, Yuri, 2000. "How did the crisis affect small and medium-sized enterprises? -- from a field study of the metal-working industry in Java," The Developing Economies, Institute of Developing Economies, Japan External Trade Organization(JETRO), vol. 38(4), pages 572-595, December.
    3. Asep Suryahadi & Sudarno Sumarto & Agus Priyambada, "undated". "What Happened to Child Labor in Indonesia during the Economic Crisis: The Trade-off between School and Work," Working Papers 360, Communications Section.
    4. Niny Khor & Iva Sebastian, 2009. "Exports and the Global Crisis: Still Alive, though Not Quite Kicking Yet," ADB Economics Working Paper Series 190, Asian Development Bank.
    5. Walden Bello, 1999. "The Asian financial crisis: Causes, dynamics, prospects," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 4(1), pages 33-55.
    6. Stephany Griffith-Jones & José Antonio Ocampo, 2009. "The Financial Crisis and Its Impact on Developing Countries," Working Papers 53, International Policy Centre for Inclusive Growth.
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    2. Alex Y. Lo & Alice S. Y. Chow & Shuwen Liu & Lewis T. O. Cheung, 2019. "Community business resilience: adaptation practice of micro- and small enterprises around the Pearl River Estuary," Climatic Change, Springer, vol. 157(3), pages 565-585, December.
    3. Hernita Hernita & Batara Surya & Iwan Perwira & Herminawaty Abubakar & Muhammad Idris, 2021. "Economic Business Sustainability and Strengthening Human Resource Capacity Based on Increasing the Productivity of Small and Medium Enterprises (SMEs) in Makassar City, Indonesia," Sustainability, MDPI, vol. 13(6), pages 1-36, March.

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