Longitudinal Development of Indonesia's Beverage Manufacturing (KBLI Division 11) Micro and Small Enterprises

Abstract

Micro and Small Enterprises (MSEs) in Indonesia's beverage manufacturing industry play an important role in industrial development, employment generation, and regional economic growth. However, limited evidence is available regarding their structural development during the post-pandemic period. This study examines the longitudinal development of MSEs operating in KBLI Division 11 (Beverage Manufacturing) in Indonesia from 2020 to 2024. Using a descriptive quantitative approach, the research analyses secondary data published by Statistics Indonesia (BPS) covering seven structural indicators: enterprise development, sources of business capital, innovation participation, types of innovation, business partnership participation, types of business partnerships, and partnership schemes. The findings reveal that the sector experienced strong post-pandemic recovery accompanied by structural transformation rather than simple business expansion. Beverage manufacturing MSEs remained predominantly self-financed, while innovation participation and collaborative business activities increased substantially throughout the observation period. Marketing and distribution innovation emerged as the most widely adopted innovation strategy, whereas partnerships increasingly focused on strengthening market access and production continuity. These findings indicate that industrial resilience is shaped by the interaction between financial independence, innovation capability, and collaborative networks. The study contributes nationally representative longitudinal evidence that enriches the literature on manufacturing SMEs and provides practical insights for strengthening industrial competitiveness, innovation ecosystems, and evidence-based policy development in Indonesia.