Economic Recovery Strategy to Leverage Agricultural MSMEs Post Covid-19 Pandemic in Central Java, Indonesia

Abstract

The study aim to study the impact of Covid-19 pandemic  on agricultural MSMEs in Central Java Indonesia, and to analyze economic recovery policy strategy. This studi is a descriptive qualitative research, and the result show that in agricultural MSMEs, Covid-19 pandemic in Central Java Indonesia, has an impact on decline sales, production, profit, selling prices of crops as well as an increase of agricultural cost, labor cost, transportation cost, and other costs. Medium-term economic recovery policy strategies include: Creative economic development to increase added value and competitiveness; Strenghtening the agricultural production and processing system for subtitution and export promotion of MSME product; Initiation of agriculture as a life style of urban society and the involvement of millenials and generation Z in agriculture. Meanwhile long-term economic recovery policy strategies include: Food safety management; Traceability and handling food waste; The development of agriculture as lifestyle of urban communities and an involvement of woman famers and millenials/generation Z in agriculture; and aglomeration of urban agriculture as tourism destination. This policy is projected to chane the face of agricultural MSMEs in Central Java from what was previously fragile  and traditional to an innovative, highly competitive, inclusive , and sustainable sector.