THE IMPACT OF INFLATION ON MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) IN INDONESIA

Abstract

Abstract

This research aims to determine the influence of the impact of inflation on MSMEs in Indonesia. The impact of inflation on Micro, Small and Medium Enterprises (MSMEs) in Indonesia can be a serious problem for business owners. Inflation can cause increases in the prices of raw materials, labor, and utilities, which in turn can reduce MSME profit margins. Therefore, having the right strategy to deal with inflation is very important for MSMEs to maintain their competitiveness. In addition, research shows that MSME labor and MSME investment have a positive and significant effect on the national income of the MSME sector in Indonesia. Meanwhile, the number of MSME units does not affect the national income of the MSME sector in Indonesia. Overall, the impact of inflation on MSMEs in Indonesia is a complex topic and requires a deep understanding of economics and business. This impact not only affects MSMEs, but also the Indonesian economy as a whole. Therefore, it is important for MSME owners to understand and prepare the right strategy to deal with inflation.