The Covid-19 pandemic that has occurred since March 2020 in Indonesia has had a severe impact on the condition of Micro, Small, and Medium Enterprises (MSMEs) in Central Java. The purpose of the study was to identify the effect of the COVID-19 pandemic on MSMEs in Central Java and identify the need for economic recovery for Central Java MSMEs. The research used a descriptive qualitative method. Data were collected by electronic survey, in-depth interviews, and Focus Group Discussion. The results showed the Covid-19 pandemic has significantly eroded the profits of MSMEs in Central Java due to a decrease in sales, while production costs remain or even increase. There is a vulnerability to closing the business in the next 1 month to 1 year based on the subjective perception of business actors. Potential risks when MSMEs cannot maintain their business are bad loans, layoffs for workers and bankruptcy for business owners, and supply & demand drop deeper. The recovery of economic conditions during and after the Covid-19 pandemic for the MSME sector in Central Java includes assisting in the recovery of production functions, financing assistance, and access to financing; and assistance in the restoration of marketing functions by encouraging online marketing.

Keywords: Micro, Small, and Medium Enterprises, Covid-19 pandemic, Need for Economic Recovery, Central Java, Indonesia.