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Revitalization Strategy for Small and Medium Enterprises after Corona Virus
Disease Pandemic (Covid-19) in Yogyakarta

Article  in  Xi'an Jianzhu Keji Daxue Xuebao/Journal of Xi'an University of Architecture & Technology · April 2020
DOI: 10.37896/JXAT12.04/1149

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Journal of Xi'an University of Architecture & Technology ISSN No : 1006-7930

Revitalization Strategy for Small and Medium

Enterprises after Corona Virus Disease
Pandemic (Covid-19) in Yogyakarta
Syamsul Hadi
Department Of Management
Universitas Islam Indonesia, Yogyakarta, Indonesia
syamsulhadiuii@students.uii.ac.id

Supardi
Department Of Management
Universitas Muhammadiyah Kudus, Kudus, Indonesia
Supardi@umkudus.ac.id

Abstract - The purpose of this paper is to explore the preparation of practical and appropriate revitalization strategies for Micro,
Small and Medium Enterprises (SMEs) after Corona Virus Disease Pandemic (Covid-19) in Yogyakarta. Methodology– This
study used a descriptive analysis method of primary and secondary data obtained directly both from field survey and from
various publication sources. Finding –Related to various problems faced by SMEs during Covid-19 pandemic to cause slowing
after the pandemic, therefore the use of the revitalization strategy of Business Model Canvas (BMC) becomes a practical and
appropriate alternative. The pilot project for developing the tourism center of SMEs creative industry must be supported by all
stakeholders. It is expected to get support from business travel partners, travel agents, hospitality, educational institutions,
financial institutions, local communities, insurance and from cooperation with competitors. It is also necessary for the
government of Yogyakarta city and village officials to make policies to encourage development to accelerate the transformation
towards the post Covid-19 stabilization phase. Research limitations – This study is focused on Yogyakarta area during Covid-19
pandemic outbreak with a policy of social distancing and physical distancing. Originality– This is the first paper of practical and
appropriate revitalization strategies as a pilot project in developing tourism center of SMEs creative industry post-Covid-19
pandemic in Yogyakarta.

Keywords – Business Model Canvas (BMC), Corona Virus Disease (Covid-19), Revitalization Strategy, Small and
Medium Enterprises

I. INTRODUCTION
Special Region of Yogyakarta is from the fusion of the Sultanate of Yogyakarta and Paku Alaman Duchy. The
economy in this region includes some investment sectors: Industry, Trade, Cooperative and SMEs; Agriculture;
Food security; Forestry and Plantation; Maritime Affairs and Fisheries; Energy and Mineral Resources; and Tourism
(id.wikipedia.org, 2020). Yogyakarta is ranked 9th highest during Covid-19 Pandemic (Covid19.go.id, 2020).The
data show that on April 22 2020, the total data of Covid-19 patients in Yogyakarta including under supervision
(PDP) was 688 people, monitoring (ODP) was 3.733 people, positive was 72 people (35 patients were still being
treated, 30 patients were cured, and 7 patients died), and those under checking process were 216 people (14 of them
died) and the numbers are still counting (corona.jogjaprov.go.id, 2020).
Today we are faced with emergency preparedness and the active response of individuals, governments as well
as businesses at all levels to act quickly in anticipating the impact of Covid-19 pandemic on the economy as a
whole. It starts with the earliest affected tourism sector where many tourists cancel the trips because some
destinations had been closed by the local government.Then it was certainty followed by the transportation sector
including land, sea, and air transportation which experienced a significant reduction in passengers, especially with
the implementation of Work from Home (WFH) for employees in several private and government companies. SMEs
will also be the most affected since they rely on supply chains that are now almost stopped, increases in raw
materials and readiness to face changes in the way they do transaction (Amalia, 2020).
The Yogyakarta government's policy strategy is very responsive in handling Covid-19 pandemic. The policy
starts with Governor Instruction No. 2/INSTR/2020 concerning increasing awareness of the risk of transmission,
No.64/KEP/2020 concerning the formation of a task force, Decree of the Governor No. 65/KEP/2020 concerning

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stipulation of emergency response status, Circular Letter No.421/02280 concerning distance learning for school
children, Governor Regulation No.26/2020 concerning the abolition of administrative sanctions on motor vehicle tax
and fees on transfer of motor vehicle ownership in 2020, and Circular Letter number SE/6/2020 concerning
guidelines for the worship of Ramadan and Eid Al-Fitr 1 Shawwal 1441 H. Related agencies, including SMEs,
Cooperatives, and industrial agencies are eager to collect the data and operational impacts of the Covid-19 pandemic
by collaborating with stakeholders to strengthen the sustainability of SMEs, and to revitalize SMEs economic sector
after Covid-19, as a foundation for equitable behavior that can create commitment and trust in the organization.
(Hadi, Tjahjono, El Qadri, et al., 2020).
However, other sectors that also have the potential to benefit from the Covid-19 pandemic, including the
agriculture sector, personal healthcare and medical services, and e-commerce. The agriculture sector will survive
because the community still needs to be supplied with food, while personal healthcare and medical services are
needed to maintain individual and community health as well as playing important role in the process of healing
Covid-19 patients. Besides, the e-commerce sector will survive with this condition since it allows customers to get
the goods/services they need, as long as it has not been implemented a large scale lockdown. The following Figure 1
presents the business sectors affected by Covid-19, both positive and negative impacts. (Consulting, 2020).

Figure 1. Business Sectors affected by Covid-19, both positive and negative impacts
(Consulting, 2020).

It is expected for this situation to continue throughout 2020, starting from supply shortages, risks of
unemployment, inflation and declining in almost all sectors. However, this is also a good time for self-reflection
related to our moral code of ethics, as well as improving relations with our social environment and our beloved
ones.It is a must to have practical steps to reduce negative impacts on the most affected sectors including corrective
policies in the economic and business fields as well as a fast and appropriate innovation to create new behaviors to
survive after Covid-19 (Septina, 2020). The innovation and skills must be considered as quickly as possible to
produce the maximum benefits from the economic paralysis in front of us (Antares, 2020; Sulaiman, 2020).
The frightening complexity caused by the Covid-19 pandemic and the threat of an economic crisis that might
be greater than the 2008-2009 financial crisis then raises the question, “Can SMEs as the frontline of the economy
return to normal after Covid-19?”. To gain this requires cooperation from SMEs to have innovation as a travel center
for creative industries in Yogyakarta with the use of Business Model Canvas (BMC) approach. Teece (2010) states
that a business model articulates the logic and provides data and other evidence that demonstrates how the business
creates and delivers value to the customers. Local governments should be able to provide guarantees and priority
support to create positive behaviors for SMEs in Yogyakarta using regulations that are fair and just (Hadi, Tjahjono,
& Palupi, 2020; Hamid & Susilo, 2015).

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II. METHODOLOGY
This paper is a policy research that aims to explore various information related to SMEs in Yogyakarta in
providing recommendations for the decision making of their development. By referring to the descriptive analysis,
even though the analytical method used in this study is relatively simple, it can provide adequate information under
the research objectives. Various matters related to the determination of the area and assessment mapping are
explained as follows.
2.1 Types and Sources of Data
The types of data needed in this study based on the source are including (1) primary data, (2) secondary data.
Primary data are usually obtained by field surveys using the original data, while secondary data are the data
collected by other parties (Hanke & Reitsch, 1998). In this study, the primary data were collected from interviews
with SMEs engaged in selected creative industries. Meanwhile, the secondary data were obtained from related
agencies or offices within the Government of Special Region of Yogyakarta.
2.1 Area Determination
Determining the delineation of tourism destination locations of SMEs creative industry and determining the core
locations of tourism center priority development of the creative industry consider National RPJM, Provincial RPJM,
and Regional Yogyakarta RPJM, site plans and feasibility studies since they become the determinants in preparing
the business plans.
2.2 Assessment Mapping
The identification of problems and potential in certain tourism destinations is based on the development policies
and strategies, as well as from the existing development conditions that mean the output will have a map of tourism
products, market segmentation and forms of tourism on each tourism product.
2.3 Business Model Canvas (BMC)
Formulating the products by using Business Model Canvas (BMC) since it is a foundation on how an
organization designs, delivers and catches the value from the products and services produced. Teece (2010) says that
a business model articulates the logic and provides data and other evidence that demonstrates how the business
creates and delivers value to the customers.

III. RESULTS
There are two priority areas namely the villages of Keparakan and Wirogunan located in Mergangsang district,
Yogyakarta and two priority products including fashion and craft which are considered to be sufficient to become
the center of SMEs creative industry. The following Figure 2 explains the process of determining the priority area
sin the development of a tourism center for the creative industry in Yogyakarta in 2020.

Determining the
location/scoping of the
area

Determining the area Priority Products including

Conducting a review of Fashion and Craft
location and development
related policies
location

Potential location based Priority areas of

Cross-Check to observe Wirogunan villageand
on policy review result
the actual condition Keparakan village

Figure 2. Process of Determining Priority Area in the Development

of Tourism Center for Creative Industry in Yogyakarta

This stage begins with determining the location or scoping of the area, then conducting a review analysis of
various policies that have been determined to select a potential location. After the potential location is obtained then
the next stage is to do a cross-check to observe the actual conditions in the field and establish the priority areas and
products.Identification of problems and potentials in the field of a tourist destination is based on policies and
development strategies, as well as from the existing development conditions,as a result, the output will have a map

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of tourism products, market segmentation and forms of tourism on each tourism products. The results of cross-
checking related to the region and priority products can be seen in Table 1.
Table 1. Map of priority areas and products
Tourism Center of SMEs Creative Industry Yogyakarta

PRIORITY AREAS PRIORITY PRODUCTS

Wirogunan Village Batik Sibori
Mergangsang District, Batik Jumputan/tie dye
Yogyakarta Fashion Rajut/Knitting
Fashion
Batik Ecoprint
Batik Tenun Lurik
Keparakan Village, Leather/Vinyl Bag
Mergangsang District, Leather/Vinyl Jacket
Yogyakarta Leather/Vinyl Sandals
Various Batik
Souvenir

After mapping the priority areas and product types, the next step is to formulate a revitalization strategy by using
Business Model Canvas (BMC) to produce a total output related to the Value proposition, Key activities, Customer
segments, Customer relationship, Key partners, Channels, Cost Structure, and Revenue stream and to provide data
and other evidence that demonstrates how the business creates and delivers value to customers. The results of
Business Model Canvas (BMC) can be explained in Figure 3 to Figure 11 as follows.

CUSTOMER SEGMENTS MASS MARKET

SEGMENTATION

Tourism Product Identification

Traveler

Establish Market Segmentation Company / Organization

(mass, segmented, niche market,
Local and foreign tourists
diversification)
Family

Analyzing Customer Profiles

(customer jobs, gain, and pain)

Gambar 3. Customer Segments Strategy

Tourism Center of SMEs Creative Industry Yogyakarta

The picture above explains how the techniques of determining customer segments, that are by doing tourism
product identification, doing the right market segmentation to choose and also analyzing customer profiles. From the
results of this analysis, the best choice in the field arises, which is setting a mass-market segmentation consisting of
traveler, company/ agency/organization, local and foreign tourists, and family market. Then after determining the
customer segments, the next step is to determine the value propositions that can be seen in Figure 4.

VALUE PROPOSITIONS VALUE PROPOSITIONS TECHNIQUE OF VALUE

PROPOSITIONS
GUEST HOST
Follow up customer Segments Lower cost Income generation Regulating access to the area

Easy Transaction Prosperous community Regulating visiting arrangements

Releasing the value map Setting package costs
Booking Management Meet new people
Autentic local Product quality and Regulating visiting behavior
experience tourist satisfaction Providing information of
program/activity and facilities

Gambar 4. Value Propositions Strategy

Tourism Center of SMEs Creative Industry Yogyakarta

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Value propositions are the value of the products or services offered to the customers which are seen from the
advantages and excellence of the product compared to competitors. Value propositions depend on what will be given
to the customer segments and players of Tourism Centers of SMEs Creative Industry in Yogyakarta. For the tourists,
they will get Lower cost, Easy Transaction, Booking Management, Authentic local experience while for SMEs, they
will have Income generation, prosperous community, meeting new people, product quality and tourists'
satisfaction.Meanwhile, the realization of the application technique must have an SOP for regulating access to the
area, visiting arrangements, setting package costs, visiting behavior, providing information of program/activity and
facilities, as a result,SMEs players have a guidance in carrying out operational activities with the main key activities
described in Figure 5.

KEY ACTIVITIES PRIORITY PRODUCTS OF PRIORITY PRODUCTS OF FORMS

WIROGUNAN VILLAGE KEPARAKAN VILLAGE

Identification of Tourism
Products
Quick assessment of destination
and potential that can be
developed
Arranging product characteristics
and requirements needed
Batik Sibori - Training
Batik Jumputan/tie dye - Training
Knitting Fashion - Training
Batik Ecoprint - Training
Batik Tenun Lurik - Training
Leather/Vinyl Bag- Training Tourists or visitors
can undertake a
Leather/Vinyl Jacket- Training purchase
transaction, training,
Leather/Vinyl Sandals - and educate the
Training
culture of the local
Various Batik - Training
communities
Souvenir - Training

Figure 5. Key Activities Strategy

Tourism Center of SMEs Creative Industry Yogyakarta

The main activities undertaken to produce the value propositions offered are (1) identifying tourism products, (2)
conducting a quick assessment of destinations and potential that can be developed, and (3) developing product
characteristics and requirements needed,as a result, each priority product from the determined areas can be identified
precisely.The key activities outline of the SMEs creative industry tourism center is divided into two that are training
products and services. A tourist or a visitor can make a purchase transaction, training, and cultural education of the
local community separately or in one package. But this will not be realized if there is no channel. Types of the
channels vary. Figure 6 shows the right channel in this business.

CHANNELS THEORY APPLICATION

Sales-force Distributing brochure and proposal

Preparing Chanel type of tourism
products marketing Own stores Coming to the production sites and displays at each
craftsman
Partner Reseller, getting reference from hotels and travel services,
Preparing Chanel phase of government-related to SMEs and tourism development
tourism marketing products
Social Media Creating Google Maps of “creative tourism center”,
Youtube, Facebook, Instagram.

Word of mouth dan content Creating products catalog and content marketing
marketing

Figure 6. Channels Strategy

Tourism Center of SMEs Creative Industry Yogyakarta

The channels determination of the SMEs Yogyakarta creative industry tourism center began with the preparation
of channels for marketing types and channels for marketing phase of tourism products ranging from sales force by
distributing brochures and proposals, own stores by coming to the production sites and displays at each craftsman,
optimizing partner resellers, getting references from hotels and travel services, and related government agencies that
have SMEs and tourism development functions, social media by creating Google maps, YouTube, Facebook,

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Instagram, and other social media platforms and marketplaces that can increase traffic. The channels will be optimal
when SMEs players also manage the customer relationship strategy described in Figure 7.

CUSTOMER RELATIONSHIP
Analyzing customer relationship
ACQUIRE STAGE Conducted by giving promotion in several events held by the
government, hospitality, educational institutions, transportation,
and online marketing using brochure or video of tourism profiles
to attract the visitors to purchase the products or to undertake
craft training reservation, or both.

RETAIN STAGE Consumers/visitors can give comments both criticism and

Determining the type and form of suggestion. By giving the facilities, the management of the
customer relationship with the tourism center will improve the service to the visitors, as a result,
tourist segments a good relation can continue including giving a gift as a reminder.

TAAP ENHANCE Consumers/visitors will know all events held in the tourism
STAGE center. By giving travel routes of tourism objects, they can see the
history and culture in the objects so that they are interested in
visiting the destination. They can also choose the training package
from the key activities.

Figure 7. Customer Relationship Strategy

Tourism Center of SMEs Creative Industry Yogyakarta

The customer relationship strategy in Figure 7. refers to how relationships will be formed between customers and
businesses by analyzing the customer relationship cycle and determining the type and form of customer relationships
with the tourist segments. The customer relationship stage starts from (1) acquire, with various media, (2) retain,
with openness through suggestions and criticisms from customers, and finally (3) enhance, by always promoting and
reminding the various activities that exist in the SMEs creative industry tourism center in Yogyakarta City, of
course, with its resources (key resource). The key resources can be seen in the following Figure 8.

KEY RESOURCES FACTORS DESCRIPTION EXPLANATION

PHYSICS Infrastructure that supports tourism SMEs Listing Networks

activities
Identification of tourism products
form and characteristics Facilities that meet the needs of the Lodging, Restaurants, Places of
tourists and provide a sense of Worship, Halls, Toilets, and
security, comfort, and easy access. Parking Lots
The main resource requirements
based on value proposition
HUMAN Human resources needed to carry Customer service, Creative
out tourism activities design, Security Officers

Human resources needed to serve Instructors

the tourists Tour Guide

Gambar 8. Key Resources Strategy

Tourism Center of SMEs Creative Industry Yogyakarta

Key resources are the most important things that must be owned so that key activities can be carried out and
the value propositions can be given to the customers. Two main factors needed to be built are physics and human. In
physics, it is by structuring the SMEs listing networks to be integrated and by giving tourists supporting facilities to
provide a sense of security and comfort such as lodging, restaurants, places of worship, halls, toilets, and parking
lots. Whereas in Human it includes Customer service, Creative design, Security officers, Instructors, Tour Guide to
become the key resources of the center of the Yogyakarta SMEs Creative Industry tourism center in the hope that
these key resources can generate revenue. The revenue stream strategy is explained in Figure 9.

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REVENUE STREAMS IDENTIFICATION OF TOURISM PRODUCT FLOWS

Product Sale Batik Sibori, Batik Jumputan, Knitting Fashion,

Batik Ecoprint, Batik Tenun Lurik, Leather/Vinyl
Identification of revenue streams bag, Leather/vinyl jacket, Leather/Vinyl sandals,
on each tourism product Various batik, Souvenir

Determination of the price of the
tourism product offered
Sale of Training Training of making Batik Sibori, Batik
Package Jumputan, Knitting Fashion, Batik
Ecoprint, Batik Tenun Lurik, Leather/Vinyl
bag, Leather/vinyl jacket, Leather/Vinyl sandals,
various batik, Souvenir

PRICE OF TOURISM PRODUCT

Price List The price is fixed for each product/service

Product Feature The price depends on the quality of

products/services

Product Volume The price depends on the products purchased

Gambar 9. Revenue Streams Strategy

Tourism Center of SMEs Creative Industry Yogyakarta

The Revenue Stream in Figure 9. above shows various ways to generate profits from value propositions and
ways to get profits. Besides identifying product sales and service/training packages, the other ways are making a
price list package, looking at product features offered, as well as volume in purchases because SMEs creative
industry tourist centers in Yogyakarta use mass customer segments. In business processes, it, of course, can not be
separated from the cost structure which becomes an important concern for the managers, as shown in the following
Figure 10.

COST STRUCTURE COST MAIN RESOURCES

PLAN
INFRASTRUCTURE FACILITIES HUMAN RESOURCE

Identification of tourism object FIXED Main infrastructure Lodging, restaurants, Salary

form and characteristics COST supporting tourism places of worship,
activities toilets, parking lots
and halls
Identification of the details of the
largest costs incurred VARIABLE Maintenance Promotion Training for Tour
COST Guide Instructors, CS
Security, Creative
design

SEMI- Short training for the

VARIABLE - tourists -
COST

Gambar 10. Cost Structure

Tourism Center of SMEs Creative Industry Yogyakarta

This cost structure shows the details of the largest costs that must be paid off to carry out the key activities and
to produce the value proposition in the form of fixed costs, variable costs and semi-variable costs; (1) Infrastructure
costs such as the construction of main and supporting infrastructure and its maintenance, (2) Facilities such as
lodging, restaurants, places of worship, toilets, parking lots and halls, promotions, and short training for tourists, (3)
Human Resources (HR) such as Salary, allowances, training for each employee managing SMEs Creative Industry
tourism centers in Yogyakarta. The businesses will not be able either to run on their own or let alone grow if they do
not have supply chain partners. Figure 11 below will explain the key partners of the SMEs creative industry tourism
centers Yogyakarta.

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KEY PARTNER COOPERATION PARTNER

Collaboration with Government ofYogyakarta, Wirogunan Village dan

Identification of revenue streams the companies that Keparakan Village, Local Communities, Business
for each tourist product are not the same travel partner (airport, station, transjogja, etc.), travel
type agencies, Hospitality, educational institutions,
financial institution, insurance services
Scenario for determining Collaboration with Knowledge Sharing
partnerships for tourism products the competitors

FORM OF PARTNERSHIP

Form of Description Ownership Facilities

cooperation

BOO Communities/S Communities/ Facilities owned by

(Build, MEs SMEs communities/SMEs
Own, communitybuild, community community
Operate) own the facilities
and operate them

Gambar 11. Cost Structure

Tourism Center of SMEs Creative Industry Yogyakarta

Key partners are those who can work together with to optimize the allocation of resources and activities through
cooperation, then reducing risks and uncertainties in the competitive environment, and acquiring to improve
business performance capabilities. Cooperation partners are essential to accelerate the development of this business
by collaborating with the city government of Yogyakarta, Wirogunan and Keparakan villages, local communities,
Business travel partners (airports, train stations, Transjogja, etc.), travel agencies, hospitality, educational
institutions, financial institutions, insurance service and also by working with the competitors for knowledge sharing
product. This collaboration is formed in BOO (Build, Own, Operate).

IV.CONCLUSION
Related to various problems faced by SMEs during the Covid-19 pandemic, they will experience a slowdown
after the Covid-19 pandemic, so the revitalization strategy using Business Model Canvas (BMC) is one of the
practical and appropriate alternatives. The pilot project of developing the SMEs creative industry tourism center
must be supported by all stakeholders. The support is expected to come from business travel partners, travel agents,
hospitality, educational institutions, financial institutions, local communities, insurance and from the cooperation
with competitors. The policies of the government of Yogyakarta city and the village officials are carried out to
encourage development to accelerate the transformation towards the post-Covid-19 stabilization phase.

To accelerate the achievement of revitalization, the BMC strategy is very appropriate in the development of
SMEs. Some recommendations on policies and strategies are including: (1) Government supports for the
development of channels, and program alignment from various government agencies as a result there will be aligned
policies including developing promotions to both export and domestic markets with a variety of more modern and
varied media. (2) Credit policies by banks with lower interest rates and simpler processes, as a result, they will
support the acceleration of the revitalization process; (3) Quality of physical and non-physical infrastructure
improvement, as a result, the creative tourism center of the SMEs in Yogyakarta City has higher competitiveness.

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