UTILIZATION OF ECONOMIC RESEARCH AS A BASIS FOR SME DEVELOPMENT POLICY ANALYSIS PEMANFAATAN RISET EKONOMI SEBAGAI DASAR ANALISIS KEBIJAKAN PENGEMBANGAN UMKM Section Articles

Abstract

This abstract aims to analyze the crucial role and mechanisms for utilizing economic research
findings as the primary basis for formulating effective policies for the development of Small
and Medium Enterprises (SMEs). SMEs are the backbone of the national economy, yet they
often face persistent structural challenges, such as limited access to financing, low technology
adoption, and low quality of human resources. The method used is a desk study (problemsolving analysis), by systematically reviewing relevant economic research literature and the
policy framework for SME development in Indonesia. The results of the study indicate that
economic research, particularly those based on econometrics and impact evaluation, provides
essential quantitative and qualitative evidence for designing targeted and measurable policy
interventions, particularly in addressing core problems such as production inefficiencies and
market barriers. In addition, this study highlights the importance of improving the quality of
micro data on SMEs, which has so far been weak, often resulting in inaccurate policy
analysis. The main conclusion is that the integration between research and policy formulation
must be institutionalized to achieve evidence-based policies. The implication is that a
sustainable data-based collaboration mechanism is needed so that research utilization does
not stop at the recommendation stage, but becomes part of a consistent policy formulation
process. There is also a need for stronger synergy between academic/research institutions and
policymakers to ensure the utilization of research findings, as well as the need to develop a
shared data platform to facilitate knowledge transfer.