Batik SMEs Digital Literacy Analysis on Digital Economic Readiness during the COVID-19 Pandemic

This study aims to determine the effect of the level of digital literacy on readiness of community level for 2020 digital economy at Batik Small and Medium-sized Enterprises (SMEs). This study uses a quantitative approach with purposive sampling technique which determines 65 respondents in the Masaran, Sragen, Central Java Batik SMEs who have marketed the products through online using social media. The questionnaire was used to retrieve data. Descriptive analysis techniques and multiple linear regression were used to process the data. The results of the descriptive analysis show that the digital literacy level of the majority of Batik SMEs entrepreneurs is in the low category. The regression results indicate that digital literacy has a positive effect on the readiness of community level for 2020 digital economy with the level of gender, educational background, and internet networks as control variables, the higher digital literacy level owned by business people, the higher the community readiness to join the digital economy era which requires have the skills to use digital media also increase.


Introduction
Changes in human behavior patterns in the 4.0 industrial revolution which was marked by the shift in life activities to the online system made Indonesia the country with the largest growth in internet users in the world. The rapid growth of Indonesian internet users is supported by the fact that smartphone sales as a medium for accessing the internet in Indonesia have increased. The results of the We Are Social (2019) analysis show that with a total population of Indonesia 268 million, the number of mobile ownerships reaches 355 million, while internet users are half of the total population, which is around 150 million. The number of internet users is equal to the number of active social media users, and 130 million access social media using mobile devices (Figure1).

Figure 1. The Indonesian Internet Users
Source: www.WeAreSocial.com Indonesia has the fourth largest number of startups in the world, this large number of startups is an indication that the sector that drives economic growth in Indonesia in the next era will be driven by the digital economy. This digital economy prediction is increasingly influencing people's economic life with the COVID-19 pandemic. The 2019-nCoV infection is an epidemic of disease with a low to moderate mortality rate, until now there is no standard treatment and proven drug to cure sufferers of the disease, supportive treatment and self-awareness for recovery are the only strategies, despite many experimental trials. is being carried out by a team of experts from various countries but the best way we can do for now is preventive measures, such as preventing the 2019-nCoV outbreak from spreading by wearing masks and not being in a large crowd outside the home. Stay at home is a slogan during the pandemic that has hit the entire world (Wu et al., 2020). The COVID-19 pandemic has paralyzed the physical activity of the Indonesian economy because it has prohibited the world's people from leaving their homes. All activities during a pandemic that are controlled from home provide opportunities for startups to develop online businesses without having to meet face to face.
The large potential number of Indonesian internet users brings innovation opportunities from entrepreneurs to take advantage of the internet network to get bigger income. The Micro, Small and Medium Enterprises (SMEs) sector is one of the most important elements in Indonesia's economic development. This SMEs activity is one of the businesses that can survive and revive the economy due to the monetary crisis in various economic sectors, the intense competition is what requires SMEs to think creatively and innovatively in their micro, small and .The results of these statistics conclude that the use of the internet to support the activities of micro and small industries is still low, only 10.15% of SMEs use the internet to support their business. Apart from capital, the main problem that often becomes an obstacle to the growth of micro and small enterprises (SMEs) is marketing, because SMEs not only produce but also must be responsible for smoothing the demand for their products. BPS (2018) also mentioned that the lack of internet use in SMEs due to the low level of education of entrepreneurs, most of whom only graduated from junior high school, is the reason why marketing in micro and small businesses is still traditional in nature. Various micro and small business sectors in Central Java Province also have obstacles in marketing that have not utilized digital information technology and are not followed by an increase in product quality.
In addition to banking credit, the presence of an online marketplace as a place to buy and sell online, brings solutions for SMEs to improve conventional marketing and expand market share. Survey of ecommerceIQ E-Matketplace Indonesia (2020) represents the products most popular with buyers in online buying and selling platforms or e-commerce in Indonesia in the 1st quarter of 2020, apart from electronic goods, fashion needs are still buyers' favorite. National economic recovery through the e-commerce trend is currently the choice of society. Apart from the best-selling products, the table above also concludes that the e-commerce platforms Bukalapak, Tokopedia, Shopee, JD.ID, Lazada and Blibli still dominate the Indonesian online market. Bain & Company (2020) through research results show that e-commerce gross merchandise value grew 23% per year between 2018 and 2020. The other insights from study also include that Southeast Asian consumer are buying into more categories online, especially grocery with 43% of respondents saying they now shop for packaged groceries via e-commerce. Ofcourse this is an opportunity for micro and small entrepreneurs who need markets to market their products without meeting physically during the ongoing COVID-19 pandemic, Batik SMEs were no exception, which was included in the textile industry category.
Efforts to reduce poverty rates in Indonesia and Central Java Province in particular are closely related to the success of Micro Small and Medium Enterprises. Based on BPS data (2018) the existence of micro and small businesses contributes around 5.20 % in improving the economic conditions of people in Central Java (jatengprov.go.id, 2020) this figure is comparable to a reduction in the poverty rate of 63,380 people. Based on data from the Ministry of Industry (2019), the existence of the batik industry growing in Indonesia contributed to an export value of IDR 251.86 billion during the first semester. The batik industry is dominated by small and medium size enterprises (SMEs) which are spread across 101 centers in Indonesia. The total number of businesses there is 47,000 business units and is able to absorb a workforce of more than 200,000 people. The recognition of Indonesian Batik from UNESCO as a world heritage in 2009 added value to the development of batik, especially the micro and small industries in the Masaran batik centers (Pilang, Kliwonan and Jati) which number more than 1,000 craftsmen. Masaran Batik Center is the largest batik producer cluster in Central Java for the Solo-Yogyakarta region. But opportunities in the digital economy require good digital literacy skills. With the digital literacy of Masaran Batik SMEs entrepreneurs, the level of readiness to face challenges and opportunities to participate in the digital economy era can increase. Digital literacy is defined in the Ministry of Education and Culture (2017) as knowledge and skills to use digital media, communication tools or networks in finding, evaluating, using, making information and utilizing it in a healthy, wise, intelligent, thorough, precise, and obedient manner. Based on several previous studies and the problems that occurred during the COVID-19 pandemic, this study aims to analyze whether the level of digital literacy owned by entrepreneurs at Masaran Batik SMEs affects the perception of readiness regarding the 2020 digital economy.

Literature Review
The new literacy covers Internet networks and other Information & Communication Technology (IT) has elements consisting of the skills, strategies and dispositions needed to successfully achieve, use and adapt to technology in the context of information and communication that is changing rapidly and always emerging with novelty. In our world until it ultimately affects all areas of our personal and professional life. This new literacy in the digital world enables us to use the Internet and other forms of ICT to identify important questions, seek information, evaluate the usefulness of information, synthesizing various information that has been obtained to answer questions and then communicating the answers to other people who have a relationship with the topic being solved (Leu et al., 2007).
Digital literacy provides broad access to increase knowledge. The sophistication of today technology also provides a platform to speak up and get your views heard. For women in developing countries, the internet is an open door to real benefits; develop business, education and job opportunities to improve the community economy. Gilster (1997) digital literacy is defined as the ability to understand and use information in various forms from a very wide variety of sources accessed via computer devices. Bawden (2001) offers a new understanding of digital literacy rooted in computer literacy and information literacy, digital literacy is more associated with technical skills in accessing, compiling, understanding, and disseminating information. So that digital literacy demands to have the ability to use various multimedia sources more effectively and related to knowledge, understanding and skills in using mass media.
Littlejohn et al., (2012) classified digital literacy elements are as follows, 1) Information literacy concerns how capabilities find, interpret, evaluate, manage, to share the information, 2) Digital scholarships include active participation in academic activities, for example in research practice, 3) Learning skills covers alleffective learning technology that has complete features for engagement both formal and informal teaching and learning processes, 4) ICT literacy or information technology literacy and communications that focus on how to adopt, adapt and use good digital devices applications and services, 5) Privacy management how to manage the online identity, 6) Communication and collaboration covers active participation in the digital network for learning and research,7) Media literacy or media differentiation includes critical reading and creative communication skills academics and professionals in a variety of media.
Readiness is a person's condition as a whole which can make him ready to be able to respond or answer in a certain way to a situation he is facing. Then someone will adjust to these conditions and will influence or have a tendency to respond (Slameto, 2010). There are different types of readiness viewpoints related to the role of society and IT. Parasuraman (2000) defines readiness that involves technology as the tendency to use new technology to accomplish the goals of various jobs both at home and at work. The concept of technological readiness focuses on the openness of society to new technological information and its usability aspects. Kurniati et al., (2015) measuring the level of community readiness for industrial economic activities using the Community Readiness Model (CRM) which uses primary and secondary data with the following indicators; businesses owned by the community, knowledge of activities, leadership, community conditions, knowledge of current issues and sources of problems.
The 2020 digital economy is the basis for the government to make it the largest digital economy in Southeast Asia which focuses on development in the digital sector. In preparation for the digital economy competition, the government also targets e-commerce transactions to reach US $ 130 billion and create 1000 technopreneurs with a business value of US $ 10 billion by 2020 (Kominfo, 2019). To achieve this target, access to various business sectors including SMEs is needed to strengthen the building of the digital economy ecosystem. However, there are quite a lot of problems in achieving this target, including changes in business models in various sectors from conventional to digital.
The research results of Erlanitasari et al., (2020) conclude that the government needs to socialize through the Go Online Indonesia SMEs movement by forming sustainable government and e-commerce collaboration as a strategic step to face digital energy competition of Asia in 2020, similar things are also recommended by Shofiana (2020)

Research Design
The  The data were collected using test and questionnaires where the respondents only choosesthe available answer. Questionnaire technique was applied by giving respondents a set of written statements and question to answer. The measurement of digital literacy (X1) used a five-point Likert scale (5 to 1) from "strongly agree" to "strongly disagree", the number of points is counted and divided by all questions then multiplied by 100%. Respondent literacy were divided into three categories, high (more than 80%), given a score of 3, moderate (60-80%) given a score of 2 and low (<60%) given a score of 1 (Chen & Volpe, 1998).
All data on control variables were collected using a questionnaire that provide two answers, the respondents only chose the checklist (v) on the appropriate statement. While the level of community readiness is measured using 18 statements are only provided with two options "care" will be given point 1 and "don not care" will be given point 0, the readiness score in percentage is calculated by dividing the total points by all items then multiplied by 100%. Next uses the Community Readiness Model and to assess the community readiness factor using multiple regression methods. Before, the instruments were subjected to validity and reliability testing. The validity testing results show that all instruments were valid and had reliability coefficients > 0.7.

Data Analysis Technique
The data obtained from the tests and questionnaires were then analyzed using descriptive statistics with the IBM SPSS Statistics 17     Based on the results of the descriptive analysis of table above, it is found that the overall digital literacy level of the Masaran Batik SMEs entrepreneur community is still at a low level, especially aspects of media literacy, privacy management, ICT literacy, and digital scholarship. This presents that the batik entrepreneur community has not been able to filter information on social media and maintain social media privacy properly. It can be said that aspects such as optimizing the use of digital devices and the use of various digital practical applications have not been maximized. However, awareness of seeking information through the internet, frequently accessing news online, and using chat & video call applications that are more efficient have been able to be implemented by the Batik SMEs. This is evidenced by the score for the aspects of communication and collaboration, information literacy and learning skills which are at the medium level. While the digital literacy level of respondents when viewed from the aspect of personal literacy was 58.46% in the low level and 41.54% in the medium level (Table 5). It can be concluded that none of the batik entrepreneurs in Masaran SMEs have a high digital literacy level.  Table 6 demonstrate that the aspect of community business in dealing with digital economy issues is in the medium level (65.13%), the knowledge aspect of the community is at a low level (48.46%), the aspect of leadership is related to the care and support of leaders at the medium level, aspects of community conditions what the Masaran batik community cares most about are the obstacles and challenges related to the 2020 digital economy issue. The results of the analysis also describe that the level of public knowledge about the availability of information is still low.

Results and Discussion
Meanwhile, indicators of community support and evaluation of digital economy problems are aspects that the Masaran batik community cares about. Overall, the readiness level of the Masaran Batik SMEs regarding digital economy issues is still low (55/98%), this proves that there are still many indicators regarding digital economy issues that are not understood by the public. About 55.38% of Masaran batik entrepreneurs do not care about the essence of the digital economy, while 44.62% have a fairly good level of concern about digital economy issues (Table 7).

Discussions
The regression test table demonstrates that the coefficient of the independent variable is positive, it can be explained that digital literacy has a positive effect on the readiness level of entrepreneurs who are members of Masaran Batik SMEs. The higher skills of entrepreneurs in various digital aspects will lead to a higher level of readiness to face digital economy issues in the Covid-19 pandemic which has changed people's behavior to be online-based, including in marketing and distribution of goods. If respondents have knowledge of media, learning, information, communication, technology, and the internet, their level of concern for digital economy issues will increase. This concern refers to their understanding of the opportunities, obstacles, weaknesses and strengths that will be faced when the digital economy becomes a new culture in people's lives. This research confirms Shofiana (2020) who explains that virtual technology in SMEs is a solution to overcoming the economic crisis during the Covid-19 epidemic in Indonesia. These results also support the research of Salsabilah (2019) that digital literacy has a positive effect on SMEs entrepreneurs. Widyastuti et al (2016) also explained that digital literacy that focuses on female gender is able to bring change to the economy.
Apart from gender and educational background the internet network also controls the entrepreneurs who are members of Masaran Batik SMEs for communicate in multimedia and try to involve digital media to market products, its users can exchange messages in the form of text, visual, audio, to audio-visual (video). Through the internet too, information can spread faster and wider than the media predecessor. An information that occurs in a part of the world, can recognized quickly by people in other parts of the world. Digital literacy provides broad access to increase knowledge. The sophistication of today's technology also provides a platform to speak up and get your views heard. For women in developing countries, the internet is an open door to real benefits; develop business, education and job opportunities to improve the community economy.

Conclusion and Suggestion
Based on the analysis that has been carried out, it can be concluded that digital literacy has a positive effect on the readiness of the community in facing the 2020 digital economy issue at Masaran Sragen Batik SMEs, the low level of digital literacy of entrepreneurs in Batik SMEs is directly proportional to the level of entrepreneurial readiness which is still low. The relationship between digital literacy variables and community readiness is controlled by the variable gender, educational background, and the internet network. The implication is that it is very important to increase digital capabilities and knowledge for Small Medium-size Enterprise (SMEs) entrepreneurs to be able to compete in a digital economy that requires everything to be online based, especially during the Covid-19 pandemic. Measuring the level of readiness in research still has weaknesses, for further research it is suggested to improve the limitations of research by adding variables that are thought to have a strong influence on people's readiness to face the digital economy by using the interview method so that research data is more accurate.