Industrial Resilience of Indonesia's Apparel Manufacturing Mses: A Longitudinal Analysis

Abstract

Micro and Small Enterprises (MSEs) in Indonesia's wearing apparel manufacturing industry play an important role in employment creation and industrial development, yet evidence on their post-pandemic structural transformation remains limited. This study analyses the development of MSEs in KBLI Division 14 during 2020–2024 using nationally representative secondary data published by Statistics Indonesia (BPS). A descriptive quantitative design with a longitudinal approach was employed to examine five structural dimensions: enterprise development, sources of business capital, innovation, business partnerships, and partnership schemes. The findings indicate that the industry's recovery was characterised not only by fluctuations in the number of enterprises but also by significant structural adjustments. Self-financing remained the dominant source of capital, while innovation activities gradually increased, particularly product innovation. Business partnerships expanded after the pandemic, with collaboration primarily focused on raw material supply, operational cooperation, subcontracting, and general trading. These findings suggest that the resilience of apparel manufacturing MSEs has been shaped by the interaction between internal financial resources, incremental innovation, and collaborative business networks rather than by enterprise growth alone. This study contributes to the literature by providing an integrated longitudinal profile of Indonesia's apparel manufacturing sector and offers evidence to support industrial policies aimed at strengthening competitiveness, resilience, innovation, and sustainable development among manufacturing MSEs.