Analysis of the Impact of Productive Assistance for Micro Enterprises (BPUM) on Profits for MSMEs in Gianyar Regency

Authors : Sri Chandra Pawitri; I. Wayan Sukadana

Volume/Issue : Volume 8 - 2023, Issue 7 - July

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The COVID-19 pandemic has had a serious negative impact on economic performance, especially for MSMEs in Bali. The Ministry of Cooperatives and SMEs seeks to overcome these problems by issuing a business capital assistance policy in the Economic Recovery (PEN) program through Productive Assistance for Micro Enterprises (BPUM). This study aims to study the impact of the distribution of BPUM on MSMEs profits in Gianyar Regency. This study surveyed 110 MSME in Giayar Regency in Bali, that received and did not receive BPUM insentive in 2020 and 2021. This study use instrumental variable to evaluate the effect of BPUM on MSME profit. The results of this study indicate that MSMEs that receive BPUM earn higher profits compared to MSMEs that do not receive BPUM. The BPUM program can be utilised by MSMEs to overcome capital difficulties and increase operating profits. This means that this program has helped MSMEs maintain their businesses and earn profits as a form of economic resilience during the COVID-19 pandemic.

Keywords : Policy Impact Evaluation, BPUM, COVID-19, MSMEs, Gianyar.


Paper Submission Last Date
31 - December - 2023

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