The Chamber of Commerce and Industry (Kadin) for Social Affairs and Disaster Management together with the Indonesian Continuity and Resilience Association (InCRA) through the Urban Community for Resilient Action (KUAT) programme by the United States Agency for International Development (USAID BHA) held a workshop on ‘Development of Guidelines for the Preparation of Business Continuity Management System Documents for the Disaster-affected MSME Sector’ on 27-29 August 2024 in Sentul, Bogor.
The theme of the workshop was ‘Building a Business Continuity Management System based on Risk Assessment and Business Impact Analysis to Accelerate the Recovery of MSME Sectors Potentially Affected by Disasters’.
The Asian Disaster Preparedness Centre (ADPC) stated that MSMEs are highly vulnerable to the impact of disasters, which can cause significant disruption to their operations, resulting in loss of income, damage to assets, and in some cases, even permanent closure. The World Bank also presented data showing that MSMEs are less able to bear the costs of climate change compared to larger companies. Therefore, it is important to provide assistance to MSME actors, especially in preparing risk assessments and post-disaster business impact analyses.
In the future, MSMEs are expected to better understand the implementation of Business Continuity Management Systems, be able to identify and assess risks that can affect business continuity, establish critical resource dependencies in the business impact analysis process, determine the maximum period of disruption that can be tolerated by the business, produce expected outputs from business impact analysis, and overcome common challenges in the risk assessment and business impact analysis process.
MSMEs (Micro, Small, and Medium Enterprises) are the backbone of the economy in Indonesia. However, MSMEs often face major challenges in maintaining their operations and business continuity after a disaster. Therefore, a proactive approach is required to mitigate risks and prepare effective recovery measures.
