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Five Factors for the Decline in MSMEs Turnover in the 2024 Election

Haris Sunandar by Haris Sunandar
January 12, 2024
in Whats on
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Deputy for Micro Business Ministry of Cooperative and SME and IPKB (Indonesian Convection Entrepreneurs Work) Nandi Herdiaman to deliver about the decline demand of MSMEs product ahead of election period

Deputy for Micro Business Ministry of Cooperative and SME and IPKB (Indonesian Convection Entrepreneurs Work) Nandi Herdiaman to deliver about the decline demand of MSMEs product ahead of election period

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Heaptalk, Jakarta – The campaign period becomes beneficial for all of the MSMEs actors. Political parties bought all of the knick-knacks and campaign tools from them.

However, such occasions are not occurring during the 2024 presidential election, numerous of MSMEs actors complained their turnover has decreased much further compared to 1999. The Ministry of Cooperatives recorded around 40-90% sales.

The reported income decline was observed in MSMEs at Pasar Jaya Tanah Abang and Pasar Jaya Senen in DKI Jakarta through field observations and 15 interviews conducted by the team. The Ministry’s staff also interviewed 15 MSMEs actors.

Deputy for Micro Business KemenKopUKM Yulius said, the decreasing sales is caused by five factors. The first one being political parties have ordered products for campaigning through business actors affiliated with the party.

The second one, the short presidential election period. For the 2024 presidential election, the campaign period only takes 2,5 months whereas the 2019 presidential election took 6 months. The third one, the product sales prices for online campaigns are cheaper.

The fourth one, with an online campaign trend, the election participants decided to allocate their funds to use social media/buzzer/influencers to do the campaign.

The last one being election participants prefer to distribute basic necessities/cash rather than distributing t-shirts.

Similar things were being delivered by the Leader of IPKB (Indonesian Convection Entrepreneurs Work) Nandi Herdiaman stated that this year’s presidential election had no impact on the MSMEs actors specifically for those who work under the convection and screen printing field that produce or sell campaign attributes. It is unfortunate as the election campaign season is a long-awaited moment.

“There are several incomes, it’s not that there aren’t any, however the orders are still not enough. Back in 2019 during the campaign period, three months before the actual event there were 4 – 15 million orders from political parties. Compared to now, the orders didn’t meet our expectations. There are only tens of thousands alone, not from parties, just from legislative candidates,” he said.

IPKB has helped the sale since the last 6 months by presenting the members or sellers that are involved in organizations to sell their products online. “We also do our promotion in a marketplace such as Shopee to help the convection sellers to be able to do online selling. This is our attempt to survive in the digital area,” said Nandi while finishing his conference press.

 

Editorial team: Wulan Dari, Prazna Alyfia Ghefira

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