<![CDATA[Covid-19 pandemic has put the Indonesian economy into a recession, as indicated by negative (y-o-y) economic growth for 2 consecutive quarters, namely Q2-2020 of -5.32% and Q3-2020 of -3.49%. This research aimed to explain the strong resilience of the MSMEs in Indonesia against an economic recession. A total of 541 MSMEs were interviewed all over Indonesia from August to October 2020 via telephone and video call. Several selected respondents conducted focus group discussion (FGD). The descriptive analysis found that 19% of MSMEs were no longer able to survive, 30% of MSMEs still retained their employees while 51%MSMEs were still survive. The government assistance was only provided to MSMEs that have loan from banks. Based on t-statistical test, all performance indicators of MSMEs were decreasing due to COVID-19. The decline in MSME business performance was statistically significant, namely a decrease in working capital (-54%), labor (-37%), monthly income (-34%), land (-2%), and machinery and equipment (-3%). Meanwhile, the monthly operating expenses (-21%.) decrease was not statistically significant. From the FGD we conclude that the surviving MSMEs had hidden wealth such as savings, building, and vehicle assets that could be sold or pawned. Disaster risk management (DRM) and the preparation of a business continuity plan (BCP) are very important that MSMEs must have to help them survive in a critical condition or when a disaster occurs. The government should start assisting MSMEs in preparing it. Government can issue social bonds for this matter.]]>
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