FAKTOR YANG MEMENGARUHI EFEKTIVITAS IMPLEMENTASI KEBIJAKAN PEMULIHAN EKONOMI UMKM PASCA PANDEMI COVID-19

Abstract

This study aims to analyze the factors that can affect the effectiveness of the implementation of economic recovery policies for SMEs in Depok City Government. This study adopts a number of important variables from previous public policy models, both top-down and bottom-up models, namely the ability of implementing groups, SME community support, and incentives as factors that affect the effectiveness of policy implementation. However, unlike previous studies in Indonesia, this study considers the endogeneity problem of these variables by adding four strictly exogenous variables, namely policy objectives, organizational resources, work standards and involvement of SME associations. The estimation results using the 2SLS approach show that the first policy targets, organizational resources, work standards, and incentives have a positive impact on the ability of the implementing agency. Second, organizational resources have a positive impact on organization's remunerative ability to provide incentives. Third, the involvement of SME associations has a positive impact on the support of the SME community in implementing policies. Fourth, the ability of implementing groups, organizational resources, work standards, and support from the SME community have a positive effect on the effectiveness of the implementation of SME economic recovery policies. One of the factors that has the greatest influence on policy effectiveness is the support of the targeted group. This has implications that, the MSME economic recovery model in Depok City needs to be based on three main principles emphasizing a bottom-up approach: (i) community oriented, (ii) community based (iii) managed by the community.