Strengthening Micro and Small-scale Enterprises' (MSE's) Resilience and Adaptability to Accelerate Economic Recovery Post-Covid-19 Pandemic in Indonesia

The Corona Virus Disease 2019 (COVID-19) outbreak 2020 opened a new discourse that a global health disaster could trigger an economic crisis. For Indonesia, this crisis was marked by a significant decline in economic activity in almost all sectors, so gross domestic product (GDP) growth was corrected to –2.19%. COVID-19 has had a tangible impact on the decline in the performance of MSMEs. In responding to the global crisis caused by COVID-19, MSMEs must have a crisis management strategy. Efforts to strengthen the resilience of MSMEs amidst the uncertainty caused by the COVID-19 pandemic require external support, especially from the government. This research generally aims to improve the strength and adaptive capacity of MSEs to accelerate economic recovery after the COVID-19 pandemic. From the results of the analysis, fintech financing has a significant influence on capital productivity. If fintech sets high interest rates, it will have an impact on reducing MSEs’ capital productivity. The value of loans during the pandemic era for access to online loans has the potential to strengthen the resilience of MSEs from the pressures of the economic crisis. The suitability of the loan value to business needs shows that MSEs whose fintech loans match business needs will be able to increase capital productivity compared to MSEs with unsuitable fintech loans, and the usefulness of fintech loans means that fintech has a positive impact on MSEs’ capital productivity by looking at its effectiveness. Keywords: SMEs, financial technology, capital, productivity