RISK IDENTIFICATION OF SMALL MEDIUM ENTERPRISES IN INDONESIAN SEAFOOD INDUSTRIES

Abstract

Indonesia is considered as one of the most disaster-prone countries as it stands along the equator between the continents of Asia and Australia. This condition catalyzes a range of natural and climatic hazards. The Covid- 19 outbreak is the latest calamity exposing most of nations in the world including Indonesia which have impacting severe effects in socio economic sectors. Fishery product industries, as Indonesia is the world’s largest archipelagic state producing huge number of fishery product each year, are also affected by the covid- 19 disaster. Small medium enterprises (SMEs) involved in this sector are affected on both the demand and the supply side and given high risk of hydro-meteorological hazard as well as physical and chemical risk from the material. Identification of possible risks in SMEs’ business is truly needed to anticipate those impact occurred in the future. The aim of this study is to propose conceptual framework about risks identification and how seafood SMEs overcome those effects in Indonesia. The study is based on current literature which focused on disaster mitigation, SMEs performance measurement and risk management involved in fishery products. As a result, some factors are proposed for policy making to develop mitigation capability of seafood SMEs in Indonesia.

Indonesia is considered as one of the most disaster-prone countries as it stands along the equator between the continents of Asia and Australia. This condition catalyzes a range of natural and climatic hazards. The Covid- 19 outbreak is the latest calamity exposing most of nations in the world including Indonesia which have impacting severe effects in socio economic sectors. Fishery product industries, as Indonesia is the world’s largest archipelagic state producing huge number of fishery product each year, are also affected by the covid- 19 disaster. Small medium enterprises (SMEs) involved in this sector are affected on both the demand and the supply side and given high risk of hydro-meteorological hazard as well as physical and chemical risk from the material. Identification of possible risks in SMEs’ business is truly needed to anticipate those impact occurred in the future. The aim of this study is to propose conceptual framework about risks identification and how seafood SMEs overcome those effects in Indonesia. The study is based on current literature which focused on disaster mitigation, SMEs performance measurement and risk management involved in fishery products. As a result, some factors are proposed for policy making to develop mitigation capability of seafood SMEs in Indonesia.