Public activity restrictions during the COVID-19 pandemic triggered a contraction in the economy and employment situation in Indonesia. Various efforts have been made, including digital adoption in the micro- and small-scale enterprise (MSE) sector which absorbs a large number of workers. Is the internet helping MSEs to survive and thrive during the COVID-19 pandemic? How can the government encourage MSEs to benefit more from the digitalization by overcoming disparities in MSEs' digital literacy and skills? The SMERU Research Institute held a policy dialogue on the impact of the public activity restrictions and digital activities of MSEs in order to revive the Indonesian economy during and after the COVID-19 pandemic.