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Weathering the Storm: Examining the Resilience of Small and Micro Firms in Indonesia During the COVID-19 Pandemic

Author

Listed:
  • Dhaniel Ilyas

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

Abstract

This paper examines the resilience of small and micro enterprises (SMEs) in Indonesia during the COVID-19 pandemic using panel data from the Micro and Small Industry Survey (VIMK) conducted by the Central Bureau of Statistics (BPS) in 2019, 2021, and 2022. By employing firm-level panel regressions based on 2-digit KBLI classifications and size categories, the study identifies key structural and behavioral factors associated with firm performance during the crisis period. The results reveal that digital adoption—measured by the use of digital marketing and online sales—is a critical driver of resilience for small firms. The study contributes to the growing body of evidence on how digital strategies can buffer SMEs against external economic shocks and support their post-crisis recovery.

Suggested Citation

  • Dhaniel Ilyas, 2025. "Weathering the Storm: Examining the Resilience of Small and Micro Firms in Indonesia During the COVID-19 Pandemic," LPEM FEBUI Working Papers 202585, LPEM, Faculty of Economics and Business, University of Indonesia, revised 2025.
    • Handle: RePEc:lpe:wpaper:202585
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    File URL: https://lpem.org/repec/lpe/papers/WP202585.pdf
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    Keywords

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    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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