Professionalization of MSME Lodging in Yogyakarta, Indonesia

Father James J. Spillane, S.J.
September 19, 2021
Strategy & General Management
10 pages
Indonesia, SMEs entreprises, Tourism, Catholic Social Theory, Ignatian Pedagogy, economic welfare, Keynesian multiplier, covid-19, covid-19 crisis
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This proposal is written in response to two major impacts of the covid-19 pandemic: its devastating impact on SMEs entreprises and the tourism industry both globally and in Indonesia. It will focus more on solutions than a detailed description of the problem. Remembering that the Chinese character for “crisis” involves the combination of the characters “danger” and “opportunity”, there is a need for constructive suggestions on resolving this terrible global crisis. Moreover, these efforts are very much in line with two of the Universal Apostolic Preferences = helping the poor and accompanying youth who make up the bulk of employment in tourism. Moreover, since the focus will be on the hospitality industry, it is very much in line with the call of Pope Francis in his recent encyclical Fratelli Tutti for great global fraternity and social friendship based of the sacred duty of hospitality. 

Catholic Social Theory has long encouraged the approach that wealth creation is the best way to help the poor. This proposal will deal with wealth creation in the tourism sector in Yogyakarta where Sanata Dharma University has been located for the last 65 years. Sanata Dharma began as a Teacher Training Institute [IKIP]. It hosted the Third World Forum on the IAJBS in June 1995 Its rich tradition in the area of Ignatian pedagogy will help improve the skills of poor people working in SMEs in tourism especially the lodging sector. Such establishments also have suppliers who are themselves poor. Hence via the Keynesian multiplier, the rapid circulation of income via high marginal propensities to consume will improve the economic welfare of these poor people, especially youth. The covid-19 crisis offers an unexpected opportunity to think imaginatively about how, together, we can recover better. By focusing on safety, sustainability and partnerships the project will start locally first to inspire other IAJBS business schools interested in working with the tourism sector.