Small and medium enterprises are a significant source of income and employment in many developing countries, including Indonesia. In addition to directly supplying products and services to consumers, they also play a role in exporting and in supplying products and services to larger enterprises. Additionally, small enterprises can play a functon as an informal social safety net by providing a source of employment for those affected by external shocks. However, the productivity of small and medium enterprises are low compared with that of large firms. Can digitalisation enhance the productivity of the small and medium enterprises, and further contribute to reducing inequality? What are the roles of small and medium enterprises in the Gorontalo and North Sulawesi economy?
The first FKP Roadshow was held in 2013 with the aim of presenting recent research at universities outside Java, and provide a chance for international and Indonesian researchers to network. The 10th FKP Roadshow on the topic of Small and medium enterprises, digitalization and alternative livelihoods were convened on Monday, 27 February 2023 at Faculty of Economics, Universitas Negeri Gorontalo, and on Wednesday, 1 March 2023 at the Faculty of Economics and Business Universitas Gorontalo. The speakers were Dr Evi Noor Afifah (Universitas Gadjah Mada), Professor Budy Resosudarmo (The Australian National University), Dr Herwin Mopangga (Universitas Negeri Gorontalo/UNG) and Dr Joy Elly Tulung (Universitas Sam Ratulangi).
The Roadshow kicked off at Universitas Negeri Gorontalo (UNG) on Monday, 27 February 2023. Dr Raflin Hinelo, Dean of the Faculty of Economics, UNG, delivered the opening remarks and noted the importance of small and medium enterprises for the economy of Gorontalo Province, and the University continues to strengthen its research in this area.
Following remarks by the Dean, Dr Evi Noor Afifah then presented her research entitled The impact of internet diffusion on income inequality in Indonesia where she discussed whether the use of the internet in economic activities that is growing rapidly actually contribute to reducing individual and regional income inequality. Further, her analysis yielded insight into the different effects of internet diffusion.
Female labour participation in Indonesia has been relatively low compared to those in other ASEAN+3 countries, and further, participation has stalled for more than a decade. Given the recent rise in digital technology adoption, in his presentation Professor Budy Resosudarmo explored whether internet utilization, micro and small enterprises’ performances and female labour participation.
In every FKP Roadshow seminar, there is a representative of the host university and at UNG, Dr Herwin Mopangga presented his research entitled Tourism villages and creative economies in Districts Boalemo dan Pohuwato as development centers of the Tomini Bay Special Economic Zone. Amongst other, Dr Mopangga highlighted several potential threats to tourism as a source of economics growth, including cultural resistance against tourism and foreign investment, availability of land, and human resource capacity.
The FKP Roadshow at UNG in Gorontalo City was held exclusively in person and attended by about 70 lecturers and 20 post graduate students.
The Roadshow resumed on Wednesday, Wednesday, 1 March 2023 at the Faculty of Economics and Business, Universitas Sam Ratulangi in Manado. The event was opened by Professor Oktovian Sompie, Rector of Univesitas Sam Ratulangi(UNSRAT). In his remarks, Professor Sompie said that UNSRAT is committed to supporting small and medium business, as demonstrated by equipping students with the skills necessary to enter the workforce, such as through the Campus business incubator program (press coverage in Berita Manado)
In addition to Dr Evi Noor Afifah and Professor Budy Resosudarmo, the panel of presenters included Dr Joy Elly Tulung who presented his analysis enttitled Roles of micro and small enterprises on development in North Sulawesi. He outlined the major sources of economic growth in North Sulawesi Province, the biggest of which is household consumption. Small and medium businesses in Manado cater to household consumption and currently there are more than 16 thousand businesses employing more than one hundred and ten thousand people.
More than 200 people, comprised of lecturers, students, local government and private sector representatives, attended the Roadshow at UNSRAT, which was also co-hosted by the Indonesian Economists Association (ISEI) Manado Branch, and supported by Indonesia Deposit Insurance Corporation (LPS). As in Gorontalo, the event at UNSRAT was exclusively in person and no recording is available.
